Trump Says Tariffs Mean Ford Can Make New Model at Home. Ford Says It Won't.

[Le Grand Pronounceur]

Source: New York Times

8:16 PM, Sept. 9, 2018
By Neal E. Boudette

President Trump on Sunday suggested Ford Motor could begin making a small car in the United States instead of importing it from China. But the automaker quickly issued a statement saying it has no such plans.

In August, Ford announced it had killed a plan to import the Focus Active, a roomy hatchback, saying the tariffs Mr. Trump has threatened to impose on vehicles built in China would increase costs too much for the company to hit its profit targets.

Mr. Trump hailed the decision in a Twitter post on Sunday, apparently after he saw a report about the Focus Active on television. “‘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!”

Ford announced its plan to withhold the Focus Active from the United States market on Aug. 31. After Mr. Trump’s tweet, the company responded with a statement that reiterated its reasoning: The niche model was not suited for domestic production. “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,” the company said.

Read more: https://www.nytimes.com/2018/09/09/business/trump-china-tariffs-ford-focus-active.html?action=click&module=Top%20Stories&pgtype=Homepage

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The hilarity continues.

[SWBTATTReg]

1. Again, I repeat as I did in an earlier OP, that what does this idiot know about business ...

practices? He's declared multiple bankruptcies and stiffed everyone...

Ignorant...

[democratisphere]

3. borrowing trillions to subsidize his tax cuts to the wealthiest

was another bankruptcy type move.

[SWBTATTReg]

6. Yeah, I know, and sadly, we're all going to pay for this crap...take care...nt

[at140]

8. +1,000,000

[Ahpook]

5. His idiot supporters think it is the way business works

There is no discussion with them. No debate, absolutely no wavering.

It is a cult

[SWBTATTReg]

7. No, you can't. Why try even? They supporting someone who is nuts and has ...

several screws loose in his head ... his own people feel this way, I'm not making this up!

Take care Ahpook!

[Grins]

35. The "Pride of Wharton!"

Every day their students, faculty, and alumni must wake up in fear...

[democratisphere]

2. Better never than late.

Looks like the so-called deal maker will have to fold.

[bucolic_frolic]

4. Trump is just a buffoon at this point

Profit margins on small vehicles are very small or nonexistent when they are manufactured in the US. That's why they're made overseas. The idea that Ford should alter its plans, move its factory, to accommodate Trump's proclamation is ludicrous. Trump disrupting free markets can't continue. He is creating distortions that do not match planned production, capital deployment, or consumer tastes. It's a good way to f*ck up free market capitalism.

[underpants]

23. The logistics and capacity alone makes this beyond stupid

Change all their procurement and shipping just like that?
Plants just suddenly change their production capacity and reprogram the assembly line?

[cstanleytech]

9. I do wonder if the real reason they canceled the new Focus was because the Focus kept landing in top

10 lists as the least reliable cars largely due to the transmission Ford decided to put in them.
Edit: And yes I do drive one and no I would never buy another one.

[RockRaven]

10. Can't wait for the MAGA Morons, having believed Trump's BS, to burn their Ford F-150s in protest

He's gonna turn people against even the most 'Murican of 'Murican brands with his unfulfilled BS.

[keithbvadu2]

15. Burn their F-150s with their Harleys and Nikes in the back.

[BumRushDaShow]

17. !!!!!!!!!!!!!

DUzy! to both of you!!

[Bernardo de La Paz]

19. Remember Cons, liebruhls say don't inhale unhealthy burning Nike shoe fumes because science. nt

[KY_EnviroGuy]

20. And, two Keurigs in the front seat! n/t

.......

[Golden Raisin]

11. Hopefully his interference, know-it-all-and lord-it-over style

coupled with disastrous tariffs will offend and burn some fat-cat, Republican, corporate CEOs and convince them to turn on him.

[elmac]

12. Funny that he's picking on the only US car company that hasn't been bailed out by taxpayers. nt

[yuiyoshida]

13. Maybe he wants a small compact sized car

to be named after him. Surprised he hasn't requested it. Could his ego stand it?

[jmowreader]

24. Yui, can you just imagine the reviews?

It's three feet wider than any other car. The seat belts are bright red, and fall on the ground every time you get out of the car. It's upholstered in leather so slick you slide into the passenger seat if you take a left at more than 15 miles per hour. Expensive parts keep falling off it and none of them are covered by warranty; after the back brakes broke for the fifth time and the dealer asked $700 to replace them, we decided to just drive slow. It's ugly. It's slow, even when the back brakes work well enough for you to drive it normally. It gets terrible gas mileage. The police keep pulling you over because the gold paint that's the only color it comes in reflects too much light into oncoming motorists' eyes. It's got Trump's name in foot-high letters down both sides of the car, and the paint they used is really Teflon so there's no way you can paint over it. There's a photo of him on the dashboard that can't be removed. The sound system only plays Trump campaign speeches at full volume and you can't turn it off or down or pull a fuse; we even tried shooting the radio to get it to shut up and that didn't work either, but it did bring a visit from the Secret Service...who also tried shooting the radio after we let them listen to it for five minutes. And you've got to plan your trips carefully because if there's a golf course within five miles of you, the worthless piece of shit will drive right there and shut down for three hours even if you don't want to play golf today.

But those are just minor quibbles. The Ford Trump is the greatest car in the history of the world, so MAGA and buy one today.

[yuiyoshida]

26. Sounds about right!

[Canoe52]

33. First time I have seen that picture, and now I wish I could un-see it!

[riversedge]

37. that truck is hilarious.

[TreasonousBastard]

14. As I said in a previous thread about this-- this Focus is not designed...

for the American market anyway. It is built in China primarily for the Chinese and export to other markets. Kinda like how Volkswagen made a "real" Beetle in Mexico for years that didn't meet US safety specs, but sold well in Mexico and other places.

And does tangerine wankmaggot know about the Chevy Pop, (actually an Opel) only sold in Mexico?

Our bullshitting businessman, who has no idea how businesses are actually run, obviously doesn't know that China is now the world's largest auto market. He also doesn't know that a few thousand baby Focuses sold or not sold here makes absolutely no difference to Ford's bottom line, but setting up a new production line for an unprofitable model certainly would.

MAGA muddafuggahs! MAGA until it hurts.

[Honeycombe8]

22. As Romney said about Trump, Trump is no businessman.

He has never run a company with employees and officials.

Trump buys and sells real estate. He ran casinos, but failed miserably at it. He has filed five or more bankruptcies. He's a wheeler dealer con man who doesn't have a clue about real businesses, and particularly global businesses and trade.

It would be one thing not to understand trade and business, but to fail to hire "the best people" to advise him and teach him about it is inexcusable. This person is President. He's making policy about things he doesn't have a clue about and doesn't even seek to understand.

He's an idiot.

You don't just start making a new car here willy nilly. It has to be profitable. You have to get purchase of parts lined up. You have to have parts made here and set that up. You have to set up a plant at which to make and assemble the cars. It's a big deal, I would think.

Just like Carrier...when Trump said he'd stopped them from moving to Mexico. Well, Carrier had built, or was almost through building, it's very expensive factory in Mexico. Any idiot would know they wouldn't just walk away from that investment and stay here. So they did what a smart business would do: they stayed for the year, long enough to get the payola...and then proceeded with their plans.

[jmowreader]

27. They quit selling the Pop

But they're about to sell the Tornado micro-pickup...

https://www.chevrolet.com.mx/tornado-2019-camioneta-pick-up.html

Bring this car to the US and I'll be at the Chevy dealer in the morning.

[OxQQme]

30. That's a beauty of a truck.

It, at first, looked micro-ish. But defining it as micro is sorta misleading as it has a rated payload of 1600 lbs.
Rated @ 37 mpg.
If sold here, that would put a huge dent in Ford's F150 and Toyota's Tundra series, both with similar payload ratings.

[SWBTATTReg]

36. I agree. They don't sell the smaller trucks anymore (or at least that we're aware of), and ...

I wish that they would bring a smaller size pickup truck back to the market in the US. I think that they took the smaller vehicles off the marketplace because they were not making enough money on them. So what's left is the bigger, more gadget-oriented, fancier pickup trucks, which commanded a higher retail price. Perhaps one day...

[keithbvadu2]

16. Give the Trump family a small ownership stake and the tariffs would disappear.

Give the Trump family a small ownership stake and the tariffs would disappear.

[Bernardo de La Paz]

18. "The hilarity continues."? Really? NO. Deadly serious. Families' means of living hang in the balance

[KY_EnviroGuy]

21. Lunacy is more apt.

The lunacy has not stopped since the primaries.

And, it gets worse each day.......

[Le Grand Pronounceur]

29. And what are you going to do about it?

What am I going to do about it? In situations like this, humor is the only available response. That is, until November, when we both know EXACTLY what to do!

[roamer65]

25. A lot of manufacturers will kill models if Dump tariffs cars from Canada.

GM, Ford, Chrysler and Toyota all build vehicles in Canada for export to the US.

The suppliers span the border on both sides and will begin layoffs en masse along with the manufacturers.

I’d say we could lose as many as 500k jobs if he carries out his threat.

[wellst0nev0ter]

28. Ford pretty much stopped making passenger vehicles

That's because the F-150 line is worth more than 150% Ford's enterprise value, meaning all the other models are LOSING money.

Now tЯump wants Ford to lay down capital to make subcompacts that will LOSE more money in North America. Holy christ.

[fierywoman]

31. So the red MAGA hats are going to be made in the USA now?

[rpannier]

32. Trump would have built it

And the company would have lost millions and gone bankrupt

[duforsure]

34. All businesses should boycott trump and the KGOP

Or they'll wind up like they are in Russia from putin , where only the most corrupt , the worse of the worse people are allowed to prosper, and remain in control, and so he can shake them down with for protections from him. Or they'll be hurt by trump like putin has done there. These tax scam bills are meant to use as a bribe for their support, that he's using our money to pay them with.

[apnu]

38. This ignorant moron doesn't understand the auto industry or Ford at all.

“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,” the company said.

WTF!