I opened this link with the assumption I would be learning something entirely different. I am not entirely disappointed but I will use this as an excuse to discuss the inefficacy of regulation and what measures can be taken to correct that.
First the facts of the article; Ford planned to unleash a new monstrous SUV on the streets that is produced in China. I think it is a great thing that it was prevented from going into circulation, though why that happened isn't why I would have liked it to happen.
Let me talk about regulations now. The United States has put a cap on the emissions per pound that vehicles can have. The goal of course is to…
Trump’s move to slap China-built autos with an additional 25 percent levy in July undermined the profitability of the Focus Active that Ford planned to start shipping into the U.S. about a year from now, Kumar Galhotra, president of North America, said in a conference call with reporters. The company decided it wasn’t worth investing more money in a vehicle that would have had fewer than 50,000 unit sales a year in the U.S.
It is always about money.
It is never about the people.
Galhotra said:
“Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher.”
The 25% tariffs on each cars has stopped the manufacture of Ford vehicle to move to China, might work in favor for Americans because it will not take the American jobs to a different country and will help the America's economy to get a boost, as job opportunities might increase too.
These tariffs will hurt eventually but I don’t think that this will be that big of a deal since this isn’t the kind of car that flies off the lot for Ford like the Mustang and the F-150. If anything, this should incentivize them to produce this car in the US. Isn’t the name of the game about bringing jobs back to the US?
It is clear that the discontinuation on the Focus Active will not cause a significant detriment to Ford's business especially since it was made clear that the company was investing more money in a car that would have had fewer than 50,000 unit sales a year in the U.S. Ford sells more than 2.5 million cars a year in its home market, however, this cancellation is only a crack in the foundation of well-established relationships among other automakers that can result in the drawing back in the U.S. if Trump continues to instigate and fuel trade wars with China, Europe, and even Canada.
I opened this link with the assumption I would be learning something entirely different. I am not entirely disappointed but I will use this as an excuse to discuss the inefficacy of regulation and what measures can be taken to correct that.
First the facts of the article; Ford planned to unleash a new monstrous SUV on the streets that is produced in China. I think it is a great thing that it was prevented from going into circulation, though why that happened isn't why I would have liked it to happen.
Let me talk about regulations now. The United States has put a cap on the emissions per pound that vehicles can have. The goal of course is to…
Facts:
Trump’s move to slap China-built autos with an additional 25 percent levy in July undermined the profitability of the Focus Active that Ford planned to start shipping into the U.S. about a year from now, Kumar Galhotra, president of North America, said in a conference call with reporters. The company decided it wasn’t worth investing more money in a vehicle that would have had fewer than 50,000 unit sales a year in the U.S.
It is always about money.
It is never about the people.
Galhotra said:
“Our viewpoint on Focus Active was that, given the tariffs, obviously our costs would be substantially higher.”
“Our resources could be better deployed.”
Again, it’s about money.
He then said, “Pulling the…
The 25% tariffs on each cars has stopped the manufacture of Ford vehicle to move to China, might work in favor for Americans because it will not take the American jobs to a different country and will help the America's economy to get a boost, as job opportunities might increase too.
These tariffs will hurt eventually but I don’t think that this will be that big of a deal since this isn’t the kind of car that flies off the lot for Ford like the Mustang and the F-150. If anything, this should incentivize them to produce this car in the US. Isn’t the name of the game about bringing jobs back to the US?
It is clear that the discontinuation on the Focus Active will not cause a significant detriment to Ford's business especially since it was made clear that the company was investing more money in a car that would have had fewer than 50,000 unit sales a year in the U.S. Ford sells more than 2.5 million cars a year in its home market, however, this cancellation is only a crack in the foundation of well-established relationships among other automakers that can result in the drawing back in the U.S. if Trump continues to instigate and fuel trade wars with China, Europe, and even Canada.