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Ford and Donald Trump at loggerheads over hatchback production

Ford and Donald Trump at loggerheads over hatchback production

Snapshot: Ford will not move the production of a Focus Active hatchback to the United States from China.

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Ford will not move the production of a Focus Active hatchback to the United States from China, while President Donald Trump claimed that high taxes on Chinese imports means that the production of the Focus Active will be easy in America. Earlier, Ford announced that it would produce only the GT supercar, the famous Mustang, and all the crossovers or SUVs in the United States and would pull out all other segments. Innitially, the company planned to make the next generation Focus Active in its Mexico facility, but had to make some changes to this, and planned to make the economy car in China instead.

Recently, Donald Trump, United States President tweeted saying, "Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs." CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!"

Replying to Donald Trump's tweet, Mike Levine, Product Communications Manager, Ford North America tweeted,"It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units and its competitive segment." Further, he also added, "Ford is proud to employ more U.S. hourly workers and build more vehicles in the U.S. than any other automaker."

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Ford announced plans to stop making cars in the United States, except for the iconic Mustang and to focus on more profitable SUVs, in April. It stopped making Focus sedans at a Wayne, Michigan, plant in May. Earlier, the United States had imposed a 25 percent tax on Chinese Imports (worth nearly $34 Billion) and following that, another set of tariffs on goods worth over $16 Billion. The Trump administration said that it will be taxing a further $200 Billion worth of goods that are imported from China every year and in response to this, even China has started levying extra tariffs and taxes on American Imports.

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