Print Edition - 2018-09-26 | MONEY
Ford looking to boost China output to avoid US tariffs
Sep 26, 2018-
Ford is looking at speeding up plans to build more Lincoln models in Chinese plants amid the growing trade war with the United States that has made US exports less attractive, a senior executive said on Monday.
Joseph Hinrichs, Ford’s executive vice president for global operations, said he did not see any easy resolution to the trade dispute between the United States and China.
President Donald Trump on Monday imposed tariffs on an additional $200 billion in Chinese goods, prompting swift retaliation from Beijing on $60 billion in US products.
“We have long been advocates for balanced and free trade,” Hinrichs said. “We continue to encourage both the US administration and the Chinese government that it’s in everyone’s interest to work out their differences.”
The increasing exchange of tariffs makes it difficult to plan for the future and with tariffs on vehicles exported to China now reaching 40 percent there is no business case for exporting vehicles from the United States, he said.
“China is a core businesses for us,” he said, but added, “You’re talking about two very powerful economies so
we’re going to have to plan accordingly.”
The company has been planning to launch new vehicles in China to halt its recent slide in that market, he said.
Ford recently announced it was scrapping plans to import the compact Focus model from Chinese plants into the US market due to the tariffs.
Hinrichs also said he hoped a breakthrough on a revised North American Free Trade Agreement could be achieved this week.
Published: 26-09-2018 08:58