Tue
Jun 20 2017
10:06 am
By: michael kaplan
Ford to import Focus small car from China in 2019
Ford said Tuesday it plans to move production of its Ford Focus small car from the U.S. to China, where it already makes the Focus for Chinese buyers.
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Wary of the response from President Donald Trump, who has criticized Ford for making vehicles outside the U.S., Ford said the move won't cost U.S. jobs. The suburban Detroit plant that currently makes the Focus will be converted late next year to produce the Ford Ranger pickup and Ford Bronco SUV.
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I guess I'm missing something. Why is it a good thing to "finally" begin importing what is currently an American made small car?
Also, why is it a good thing that this Louisville, KY plant to receive an infusion of capital ("saved" in part by the decision not to invest in making the Focus in Mexico) will use it to produce a couple of gas guzzlers, per details below?
Also, Ford's president of global operations Joe Hinrichs said although "Chinese wages are lower than wages in Mexico (where Ford had first thought to begin manufacturing the Focus)," the cost to instead ship the vehicles from China "erases some of that advantage" and it's therefore "still cheaper to make cars for the U.S. in Mexico." This being the case, it doesn't seem we'd be reasonable to expect this new Focus emanating from China to cost us less than either an American made or a Mexican made version? Hinrichs said moving production of the Focus to China will save Ford only the tooling costs that would have been necessary to begin producing the car in Mexico? And that savings associated with those tooling costs will now be funneled into its Louisville, KY plant (presumably for tooling costs there) to make more modified, but still gas guzzling, trucks and SUVs?
Thus far, I can't tell how this move could net any savings for American consumers buying the Focus, although I do see how it will put more inefficient big trucks on America's highways. Which I guess is the demand Ford is working to satisfy.
I wonder if this decision is
I wonder if this decision is related in any way to the recent firing of Ford CEO Mark Fields.
Ford isn't the first car
Cadillac CT6
(in reply to bizgrrl)
I don't know about the whys and wherefores of building other "US" cars in China, but I'm a bit of a Cadillac enthusiast so I can shed some light on the CT6.
Cadillac has a big investment in the Chinese market. It's their second largest market. Wealthy Chinese (man it's a joke that they still identify as "communist") are partial to large sedans, and the CT6 was essentially designed primarily with the Chinese market in mind. Cadillac sold about the same number of CT6s in China last year as in the US.
The CT6 that is to be built in China is a plug in hybrid, essentially a large Chevy Volt. The Chinese government heavily promotes the building of alternate energy vehicles as a means of dealing with their smog and pollution problems, and GM expects to sell more than 3 times the number of the hybrid CT6 models in China as will be sold in the US. Given the market disparity, it makes sense for GM to build the hybrid CT6 in China and import a few to the US, rather than tooling up two plants to make the same car when the domestic market for it is expected to be so small.
... and a China-made hat
to Make America Great Again