News reporter Ian Thibodeau adds the news means Ford won't sell a new Focus in the USA next year. Automotive News reports today that Ford has cancelled its plans to import the Focus Active to the U.S., and it's all due to the 25-percent import tariff imposed as part of President Trump's trade war with China.
Ford sells 2.5 million cars a year, so the Focus Active decision isn't hugely significant, but it could be a harbinger of other cuts by Ford or other American vehicle companies because of tariffs, reducing choice for USA customers.
The last remaining Focus model Ford planned to sell in the US amid its, uh, refocus to SUVs, crossovers, hybrids and electric vehicles is no more.
"The impact to our future sales is expected to be marginal", Ford North America president Kumar Galhotra told Automotive News.
Ford (F) is scrapping the Focus Active, though it will continue to sell a sedan version of the Focus outside the United States. "Our resources could be better deployed at this stage". In addition to the levies already implemented for cars imported from China, the US has also threatened steep tariffs on vehicles shipped from Europe and has a preliminary agreement with Mexico to require that more cars and components are made by higher-wage workers to avoid duties. The company is involved in a global restructuring expected to cost $11 billion over the next three to five years. Last month, Ford's stock dipped below US$10 for the first time since 2012.
The decision could mean that the Mustang will be the only Ford passenger auto sold in the U.S.
She said 48 percent of the vehicles sold in the USA were imported past year, and even vehicles that aren't imported have a significant percentage of foreign parts.