Ford cancels SUV that it planned to import from China

Ford is canceling plans to make a new small SUV model in China and ship them back to the United States....

Posted: Sep. 1, 2018 1:11 AM
Updated: Sep. 1, 2018 1:11 AM

Ford is canceling plans to make a new small SUV model in China and ship them back to the United States.

The automaker had planned to build the Focus Active SUV in China about this time next year. But the Trump administration's planned tariffs on Chinese imports would make the plan too expensive.

Ford is scrapping the Focus Active, though it will continue to sell a sedan version of the Focus outside the United States. The company stopped building the traditional Focus sedan at a Michigan plant in May, to make room for two revitalized models: the Ranger small pickup truck and Bronco SUV.

Building the Focus Active at the Michigan plant didn't make sense because Ford anticipates selling less than 50,000 of the model here, said Kumar Galhotra, president of Ford North America, during a Detroit press conference Friday.

"Basically, this boils down to how we deploy our resources," said Galhotra. "Any program that we're working on requires resources — engineering resources, capital resources. Our resources could be better deployed at this stage."

American car buyers' growing preference for SUVs and pickups have flustered automakers. Ford announced earlier this year that it will drop sedans from its US product lineup other than its iconic Mustang muscle car.

Building small cars profitably at US plants is difficult because of the higher wages paid to workers compared to plants in Mexico and China. Ford had originally planned to shift production of the Focus to Mexico, then in June 2017 announced that it would build it at a plant in China that had excess capacity.

The Trump administration reached a preliminary agreement with Mexico earlier this week that could keep cars built in Mexico available to US buyers without expensive tariffs. But it has announced a series of tariffs on Chinese exports that would increase their cost by 25%.

Article Comments

Medford
Clear
75° wxIcon
Hi: 80° Lo: 53°
Feels Like: 75°
Brookings
Clear
75° wxIcon
Hi: 70° Lo: 51°
Feels Like: 75°
Crater Lake
Clear
69° wxIcon
Hi: 71° Lo: 44°
Feels Like: 69°
Grants Pass
Clear
75° wxIcon
Hi: 76° Lo: 50°
Feels Like: 75°
Klamath Falls
Clear
69° wxIcon
Hi: 72° Lo: 43°
Feels Like: 69°
Bright and Warm Tuesday
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Latest Video

Image

Tuesday, April 23 afternoon weather

Image

Skilled to Work: A Closer Look takes a deep look into skilled workers

Image

Tuesday, April 23 morning weather

Image

The Pledge: Sacred Heart Catholic School, Ms. Byrd

Image

Mount Shasta Schools

Image

Monday, April 22nd Evening Weather

Image

Cascade Bingo Hall Revamped

Image

Protecting and checking your skin from sun exposure

Image

Howard Prairie Lake Resort preparing for camping season

Image

Monday, April 22 afternoon weather

Community Events