Ford Motor Company has modified its future product plans yet again. The company has scrapped plans to import the next-generation Ford Focus Active from China following new tariffs imposed by the Trump Administration on vehicles imported from China.
Several months ago Ford announced drastic plans to scrap nearly every car from its U.S. lineup with the exception of the imported Focus Active and Mustang. Now that the Focus Active has been scrapped, Ford will be left with only one car in its showrooms by the end of 2019: the Mustang.
“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, confirming the change in plans.
Ford CEO Jim Hackett aspires to have the company return to 10-percent profit margins in North America. This directive is allegedly acting as a guiding compass for the company’s decision-making these days. The proposed tariffs on the Focus Active were going to lower already thin profit margins on the car, making it a rather poor financial decision for the company.
The current Focus is slated to be phased out by the end of 2019. The Fusion and Taurus models are also expected to end production sometime next year. Ford showrooms will become very SUV and truck-centric, with dealerships anticipating the launch of the 2019 Ranger and 2020 Bronco as viable sales opportunities to replace all the nameplates getting axed.