Ford to start exporting China-made cars to the U.S. in 2019
June 26, 2017 Category Automotive, Weekly
Ford Motor Co will export vehicles from China to the United States for the first time starting in 2019. Ford said that it plans to move production of its Ford Focus small car from the U.S. to China, where it already makes the Focus for Chinese buyers. Sales of small cars have dropped sharply in the U.S., and companies are seeking to cut costs. Joe Hinrichs, Ford’s President of Global Operations, said the move to China will save the company USD1 billion, including USD500 million for canceling plans to build the Focus in Mexico. Ford said the move won’t cost U.S. jobs. The suburban Detroit plant that currently makes the Focus will be converted late next year to produce the Ford Ranger pickup and Ford Bronco SUV. Hinrichs said Ford’s research shows that customers care more about product quality than where their vehicles are made. Hinrichs said Chinese wages are lower than wages in Mexico, although the cost to ship the vehicles erases some of that advantage. It is still cheaper to make cars for the U.S. in Mexico, he said, but Ford has extra capacity in China and the move frees up capital for the company immediately, the Shanghai Daily reports.
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