Ford Motor Co. adjusted expeditions to the United States in China following reprisal rates, confirmed the automaker of Dearborn.
Citing anonymous sources, the Wall Street Journal pointed out for the first time the blue oval this week interrupted the entirely of microphones Raptor F-150, Mustang muscle cars and Bronco SUVs built in Michigan, as well as Lincoln Navigator SUVs made in Kentucky in response to prices up to 150%.
“We have adjusted exports from the United States to China in the light of current prices,” said Ford spokesperson Robyn Jackson, in a statement, without indicating what models were affected.
Ford imports the Lincoln Nautilus SUV in the United States from China. The shipments of this vehicle continue, however, confirmed Jackson.
The United States and China have exchanged pricing. China has increased its rights on American goods imported to 125%, compared to 84%. Meanwhile, the United States has imposed a “reciprocal” rate of 125%, although this number was initially imposed by the United States; A 20% rate imposed on fentanyl’s drug trade; and prices under article 301 of the US trade law on certain goods between 7.5% and 100%.
Trump’s general pricing policy, in general, prompted manufacturers and suppliers to rush to learn the latest information and limit the fallout. Analysts and car leaders have said that increasing import tax costs would reduce profits, risk disturbances in the supply chain and increase vehicle prices.
“This is the blow through the arc against the White House: they say:” We do not know the rules of the game, and that is what we have to do for our company “”, said Daniel Ives, analyst of the tariff situation, the wealth consultation firm is planned. I expected GM and others to follow the costume. unprecedented times. “”
GM spokesperson Kevin Kelly said that Detroit’s automaker had had no change to account for his activities in China.
Last year, Ford sent around 5,500 Broncos, F-150, Mustangs and Navigators in China. These “passionate products” of the Ford range represent small volumes on the very fragmented market in China, but because it is the largest market in the world, these sales add up on profitable signage plates, Ford managers said.
“They probably decided that it was too prohibitive at the moment and they are likely to be a tariff agreement will be concluded,” said David Whiston, analyst of the financial service company Morningstar Inc., in an email. “The vehicles they ship there are mainly more for rich Chinese consumers due to their high-end prices and not a fundamental part of their Chinese strategy.”
The car manufacturer sold 400,000 vehicles in China last year, which represents the drop in sales, because the market has become more competitive for national players. Ford manufactures it with the partners Changan Automobile Co. Ltd. and Parent Jiangling Motors Co. Ltd., but it uses these factories mainly for exports to Southeast Asia and South America.
“The best days for China and Ford are in the rear view mirror,” said Ives about the effect that stopping shipping could have on business activities in China. “It has already been a difficult market. China is a losing situation for Ford, which has just given prices, reprisals and just the Rubix cube that they are trying to understand in the United States”
Ford vice-president John Lawler said that China’s operating profit was around $ 900 million last year, and stressed the company’s commitment to remain a global player.
“Due to the competitive nature of where the Chinese are heading, they seek to dominate in the world,” he said. “What if we are postponed to operate here in the United States and to be a car manufacturer in the United States, you know, a big profit, but where does that take us as a business in 10 to 15 years?
“We have to compete,” he continued. “And we have to learn to compete globally against the best that exist, and that’s what we do.”
bnoble@detroitnews.com
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