"Kumar Galhotra, president of the vehicle company's North America division, said the president's move to hit autos built in China with an additional 25 percent levy last month undermined the profitability of the new vehicle, which the company had initially planned to ship into the country next year".
"Given the negative financial impact of the new tariffs, we've decided not to import this vehicle from China", Kumar Galhotra, Ford president of North America, said in a conference call with reporters Friday.
The high-riding Focus will be built in China and consequently affected by the Trump administration's increased tariffs on vehicles imported from China. GM took a patriotic stance, arguing in the letter that, "Envision sales generate capital that GM can invest in the U.S".
Per Automotive News, Ford has decided it won't bring the Focus Active to the United States market even if the U.S. government removes the planned tariffs. "Our resources could be better deployed at this stage". The company is involved in a global restructuring expected to cost $11 billion over the next three to five years. It's revamping its North American vehicle lineup by eliminating all sedans in the coming years as it works to achieve 10 percent profit margins in the region.
The decision could mean that the Mustang will be the only Ford passenger vehicle sold in the U.S.
Galhotra told reporters the crossover wasn't worth putting money into a auto that they estimate would have sold less than fewer than 50,000 unit sales a year in the United States.
Tariffs could be coming at a bad time for Ford, whose stock last month dipped below $10 for the first time in nearly six years.