The Mustang is now the company’s only vehicle.
Ford said Friday that it will not be bringing the Focus Active, the larger version of the compact hatchback, to the United States due to Trump’s tariffs. The announcement comes after Ford earlier this year said it would eliminate several models from its portfolio to concentrate on SUVs, trucks, crossovers and trucks.
According to the Detroit News, Kumar Galhotra is Ford’s North American president. “Given China’s negative financial impact, we have decided not to import the vehicle from China.” The significant thing that changed was the fact that tariffs went up significantly. We are choosing to use resources elsewhere.
Ford’s decision to stop making cars is about profit. Many vehicles have low profit margins. Ford wants to increase its product line with the vehicles that consumers desire, as consumers shift towards SUVs and crossovers. The additional tariffs for the Focus Active would reduce its already low profit margin.
C-Max, Fusion, Taurus and Fiesta, as well as the current Focus, Fusion and Fusion models, are being axed by Ford. The automaker is reportedly losing money on Fusion, Focus and Fiesta. The Mustang will become Ford’s sole car, with the Focus Active being removed from the U.S. lineup. Consumers could feel the effects of the current administration’s new and continued imposing tariffs on import products.
Kristin Dziczek (Vice President of the Ann Arbor-based Center for Automotive Research) stated that many models would be pulled from the U.S. marketplace and that not all will be built in the U.S. There are many implications for both the auto industry and consumers, in terms of price and choice.
Ford won’t leave consumers searching for affordable cars behind. Dearborn’s automaker will create new products at a similar price point; they will only have crossover-like features to attract customers who are looking for that look.