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With the impending tariff on foreign-made vehicles soon to become a reality, Ford has just announced that they have pulled all variations of their Focus line from import next year. The problem stems from the profitability of a vehicle line aimed at economically-minded consumers. By imposing a 25% tariff, the US government has forced car manufacturers to increase the cost of their products by a commensurate amount, and in this case it simply wouldn't make sense for Ford to raise the price of an economy car into the price range of mid-class sedans.
Still, Ford is optimistic that their newly-implemented strategy of increasing promotion for truck lines, SUVs, and crossovers next year will compensate.
"The impact to our future sales is expected to be marginal," Ford North America president Kumar Galhotra told Automotive News. "Our viewpoint is that, given the tariffs, our costs would be substantially higher. Our resources could be better deployed at this stage."
This places Ford in an interesting position, as by 2020 the only passenger car line they have slotted for sale in the US will be the Mustang. Other popular lines such as the Taurus, Fiesta, and Fusions are all manufactured out of the country and have likewise become unprofitable due to tariffs. While this may mean uncertain times on the horizon for Ford, it may also come as a windfall for manufacturers with their operations in the US. One manufacturer's loss could mean extreme profits for others.
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Written By: Todd Hendrickson
Source: Road And Track Magazine
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