Donald Trump Won't Be Happy About The Next-Generation Ford Focus

Industry News

That's because the car will be built in China.

President Donald Trump has been very clear that he wants cars to be manufactured in the US no matter what. Trump has threatened companies like Ford with higher taxes as punishment for building cars across the border in Mexico. Ford actually scrapped its plan to build a $1.6 billion factory in Mexico thanks to Trump, but Ford's latest decision definitely won't make the president happy. Ford has announced that the next-generation Focus will be built in China and exported to the United States.

The next-generation Focus is set to begin production in the second half of 2019. Some variants of the Focus will be built in Europe, but none will be built in the US. This is the first big manufacturing decision made by new Ford CEO Jim Hackett, who took over from Mark Fields back in May. A top Ford executive said that this move will save the company around $500 million. In a press briefing with Autoblog, Joe Hinrichs, president of global operations, said that the decision was helped by dwindling demand for small cars in the US. He said that "we thought this was the best balance of that cost/capital tradeoff."

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Ford was asked if it fears paying a border tax and Hinrichs said "the capital saving outweighs the risk" of a tax coming from the White House. Ford says that no US jobs will be affected because the plant that makes the Focus currently will be retooled for the new Ranger and Bronco. The new Focus will be built in a joint-venture plant in China with Chinese partner Changan Automobile. If you're the type of person who likes to buy American-built cars, you should probably cross the new Focus off your shopping list.