Ford Just Canceled Production Of New Car, Cites Trump’s Tariffs As The Reason: Report
Donald Trump’s trade war continues to affect companies and their productions. This time Ford Motor Co. was the one to take a hit.
The auto industry giants announced on Friday that it will be canceling its plan to sell the Chinese-built Focus Active in the U.S. next year due to Trump’s growing trade war.
According to Bloomberg News, Kumar Galhotra, president of the car company’s North America division, said that Trump’s additional 25 percent levy on Chinese-built cars has led the company to cancel production of their new car.
“Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher,” Galhotra said in a conference call
“Our resources could be better deployed.”
Galhotra also told reporters that the car was estimated to sell less than 50,000 units in a sales year in the U.S. and claimed that it would not be worth selling due to the high cost of shipping the cars to the U.S.
The company plans to scrap production and not sell any units in the U.S.