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    William Maley

    Focus Active Has Been Scrapped Due To U.S.-China Trade War

      And then there was one car in Ford's future lineup

    Ford had planned on selling two cars by 2019 in the U.S. - the Mustang and Focus Active. The latter took elements of a crossover with a higher ride height, body cladding, and new bumpers, and put them onto a Focus hatchback. But plans to bring this model to the U.S. have been canned.

    Ford announced today that it has canceled the Focus Active as tariffs on Chinese-made goods would eat into profits. The company announced last year that it would import the next-generation Focus from China.

    "Given the negative financial impact of the new tariffs, we've decided not to import this vehicle from China. The significant thing that moved was the tariffs going up substantially higher. We're choosing to deploy resources elsewhere," said Kumar Galhotra, Ford president of North America.

    Unlike General Motors which had applied for an exemption on the Chinese-built Buick Envision, Ford did not apply for one as it would have not worked out due to production timing and a small number of sales - the company projected to sell fewer than 50,000 Focus Actives in the U.S.

    Kristin Dziczek, vice president of the Center for Automotive Research tells The Detroit News that this could be the first of many announcements. The combination of Chinese tariffs, along with the threat of a 25 percent tariff on imported cars and parts may push a lot of products out of the U.S.

    “Many models will be withdrawn from the U.S. market, and many won’t be built in the U.S. at all. There are a whole lot of implications for the automotive industry and for consumers in terms of choice and prices,” she explained.

    The decision also puts Ford in a tough spot. The Focus Active was going to be one of the models that would fill in the space left by sedans that are going to be cut.

    "It didn't make sense for us to continue to invest in this program. We're looking at the entire landscape, and we're thinking through what other products we can offer customers," said Galhotra.

    Source: Automotive News (Subscription Required), The Detroit News

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    And the other foot drops, Consumers get ready for greatly reduced choices due to stupidity of idiots in DC. This is going to HURT not Help consumers. This will not bring back manufacturing nor jobs to the US. 

    Global Economy, something the current administration seems to know nothing about or care about.

    This is the start as we have so many electronics built in China that many things I suspect over the next 12 months are going to stop being imported and we will be hurt not the 1%.

    Reduced Choices

    Higher Prices

    Stagnant income raises

    Overvalued stock market

    Recession is on the Doorstep!  Welcome to making America Great Again.

    :nono:

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    Our president has been a protectionist for over 30 years.  Protectionists do not CARE if their actions lead to higher prices and less choice.  He promised actions like this and he delivered.  The bad parts are already coming sometime soon.

    Congress could solve this by passing laws that rescind the president's authority on this issue.  But I doubt they will this year or maybe next year.

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    Agreed to both statements above.  Not only does this hurt consumers by having less choices, it also forces more consumers to buy Japanese or Korean cars, because that is who does small cars well.  I also wonder what Ford dealership sales will be like in 2020 when they have only 1 car to sell.  Those dealerships are going to have to see a decline in volume, which means they will lay off employees in both sales and service, because less sales means less cars to service too.

     

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    Wait until the prices of all the cars/trucks/CUV/CUVs go up because of this......

    And there are whispers the many fiance companies are going to cut down of offering leases due to risks....

     

    Focus Active was cool too....

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    Were any of you actually going to buy this car?

    and do you think those Chinese automakers now wanting to enter the U.S market should not pay recipirocal tariffs of 40% on their product?

    Trump is not to blame, Ford is careful to say that it’d only sell 50,000 units. That’s bull$h! even an uncompetitive Focus now sells more. By the way the body cladding is just a joke the car would not get AWD even as an option.

     

    Ford was plain dumb in how they planned their market strategy for this new Focus, now there’s a deal with Mexico under wraps and their plant was cancelled.

     

    Every import automaker makes their compact cars in America and they’re all better than this Focus in the ways that matter to American consumers. 

    There is no lack of choice either, you can get the actual car this Ford was supposed to ape from your local Subaru dealer.

     

     

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    1 hour ago, Cubical-aka-Moltar said:

    If the Asian car makers can build compacts in the US, Ford should be able to also...their incompetence in strategy is staggering. 

    Of course the Asian automakers can build small cars in the USA,  They build them in non-UAW plants in the South rather than the Midwest.  If you think Ford should do the same, they would have to use a non-union workforce or contract out to a non-union third party, just like Porsche did with the Boxster 20 years ago.

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    Maybe Ford will cancel the Escape next to better concentrate on the F150 and Explorer.  I bet they do a 4-door Mustang after dealers whine about not having a 4 door car.  This company has no idea what they are doing outside of the F150.  

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    Quote

    Maybe Ford will cancel the Escape next to better concentrate on the F150...

    You of all people would have to acknowledge that the best selling vehicle for something like 35 years is well & fully "concentrated on".
    - - - - -
    Ford made almost $8B in profit in '17. Wonder how much they'd make if they 'had an idea'- $25B? $50B??
    - - - - -
    They've also 'had their idea' about a 4-door Mustang for, oh, 50 years running now. Ain't happened yet.

    Screen Shot 2018-09-02 at 7.32.17 AM.png

    Edited by balthazar
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    On 9/2/2018 at 7:36 AM, balthazar said:

    You of all people would have to acknowledge that the best selling vehicle for something like 35 years is well & fully "concentrated on".
    - - - - -
    Ford made almost $8B in profit in '17. Wonder how much they'd make if they 'had an idea'- $25B? $50B??
    - - - - -
    They've also 'had their idea' about a 4-door Mustang for, oh, 50 years running now. Ain't happened yet.

    Screen Shot 2018-09-02 at 7.32.17 AM.png

    I know the F150 sells, that is where Ford makes all its money.  It is really the only class leading product they have.  All their SUVs are class average at best, if not bottom of the segment,  the car line is over, I guess the Transit and Transit Connect are better than the Ram vans and Chevy City Express but that isn't saying much.

    They should have stretched the Mustang platform into a Lincoln mid-size sports sedan, if they put an MKZ dash into 4-door mustang with the 2.3 ecoboost and the V8 they could have had a nice Kia Stinger type vehicle but with a better badge and charge an extra $10k than they do for the Mustang and how much would that really cost to add 2 doors and put a Lincoln dash board in it?  

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    • No- Ford doesn't make "all" it's 'money' from the F-150. Please post the link to internal FoMoCo balance sheets if you've seen otherwise.
    • Mustang is arguably one of the best sporty/sports cars out, once you take into consideration all the packages/ trims/ powertrains offered over the last 2 generations.
    • Transit & Transit Connect are near the top of their field, I would hazard to guess- I know they are killing the sprinter/metris in sales. Daimler hit the snooze bar on their vans and got blown out of the water.
    • I'm not up on the Ford car catalog, but I had thought the Focus was very well regarded; I just glanced at a C&D comparison with the Focus RS & a subaru & 2 other foreign brand 'hot hatches/sedans' and I believe it more than held it's own. Other Ford cars may only be mid-pack- IDK.
    • I don't see a Lincoln sports sedan fitting in with the Lincoln brand image at all. In fact, I would expect a person or 2 to blow such an effort off as a "rebadged Mustang 4-banger" or the like.

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    Ford cars are all dead after the 2019 model year except for the Mustang, so those don't really matter now.  The Mustang is better than the Camaro and Challenger, but that is a small segment.  We don't know how the Supra will be priced, there could be competition there. 

    The Metris is the only mid-size commercial van for sale, Ford does have a strong commercial van business with the Transit vans, they are a segment leading there and with the F150.  

    Escape, Edge, Explorer are all beat by the crossovers coming out of Toyota, Honda, Subaru, Mazda, Hyundai and Kia,  even the VW and GM SUVs are better, so Ford has a lot of work to do there.  I can't think of any crossover segment where there aren't 5 better options than Ford's product entry.  Likewise with Lincoln, anything from Lexus, Infiniti, Acura, the Germans or Cadillac is better than the Lincoln offering of equal money.  

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    I'm in the 'wait & see' camp RE Ford dropping all cars other than the Mustang. It certainly won't be an immediate, across-the-board discontinuation- dealers and customers will go into a tailspin. Cars are still fully 20% of Ford's (the brand) business, and there's no way they're losing money on them all- profits are too healthy for that... but we're all just guessing on that count.

    Ford's SUVs are doing tremendously well; they're moving over 800K annually. hyundai only has 3 SUV/CUVs, and 1 only just came out. Mazda only has 3, at least kia has 4 plus the minivan. But Ford destroys kia in CUV/SUV sales, and they're neck & neck with toyota (467K vs. 489K thru July). Bring trucks into the picture and toyota is DOA. Regardless of what consumer reports may keep regurgitating, Ford in CUV/SUV/trucks is the dominator in the market.

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    2 hours ago, balthazar said:

    I'm in the 'wait & see' camp RE Ford dropping all cars other than the Mustang. It certainly won't be an immediate, across-the-board discontinuation- dealers and customers will go into a tailspin. Cars are still fully 20% of Ford's (the brand) business, and there's no way they're losing money on them all- profits are too healthy for that... but we're all just guessing on that count.

    Ford's SUVs are doing tremendously well; they're moving over 800K annually. hyundai only has 3 SUV/CUVs, and 1 only just came out. Mazda only has 3, at least kia has 4 plus the minivan. But Ford destroys kia in CUV/SUV sales, and they're neck & neck with toyota (467K vs. 489K thru July). Bring trucks into the picture and toyota is DOA. Regardless of what consumer reports may keep regurgitating, Ford in CUV/SUV/trucks is the dominator in the market.

    The F-series dominates pickup truck sales.  That lead probably extends into BOF SUVs.  How well does Ford do in unibody CUVs versus the competition?

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    7 hours ago, riviera74 said:

    The F-series dominates pickup truck sales.  That lead probably extends into BOF SUVs.   

    No, the Tahoe & Suburban outsell the Expedition by a substantial margin. 

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    Thru June ~
    '18 Expedition : 28K
    '18 Tahoe : 50K
    '18 Suburban : 30K

    Now, I had thought the Explorer was still positioned against the Tahoe (platform irrevelent) but in checking I'm surprised they are so far apart in MSRP (T: $47K, E: $32K). But the Explorer did move 111K units thru June.

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    1 hour ago, balthazar said:

    Thru June ~
    '18 Expedition : 28K
    '18 Tahoe : 50K
    '18 Suburban : 30K

    Now, I had thought the Explorer was still positioned against the Tahoe (platform irrevelent) but in checking I'm surprised they are so far apart in MSRP (T: $47K, E: $32K). But the Explorer did move 111K units thru June.

    The Expedition has been the Tahoe competitor for 20+ years; I don't think the Explorer has ever been positioned against the Tahoe---it's their midsize CUV...more of a Traverse competitor currently, though the new Blazer will be going up against the NG Explorer also I would think... 

    Edited by Cubical-aka-Moltar
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    10 hours ago, riviera74 said:

    The F-series dominates pickup truck sales.  That lead probably extends into BOF SUVs.  How well does Ford do in unibody CUVs versus the competition?

    The Armada and Sequoia are both BOF, aren't they?

    Their YTD sales, FWIW, are:

    Armada: 20k

    Sequoia: 6k

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    2 minutes ago, ccap41 said:

    The Armada and Sequoia are both BOF, aren't they?

    Their YTD sales, FWIW, are:

    Armada: 20k

    Sequoia: 6k

    Yes, those are their Tahoe & Expedition competitors.   The Sequoia is pretty dated, IIRC.

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    19 minutes ago, Cubical-aka-Moltar said:

    Yes, those are their Tahoe & Expedition competitors.   The Sequoia is pretty dated, IIRC.

    I think the Sequoia and Armada are both dated.. 

    Ford does seem DOOMED

    Ford Sales.jpg

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    4 minutes ago, ccap41 said:

    I think the Sequoia and Armada are both dated.. 

    Yeah, Armada less so..it moved to the circa 2010 Patrol platform for MY 2017, retiring the previous 2004 era model...current Sequoia dates to MY 2008.

    Edited by Cubical-aka-Moltar
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    2 hours ago, Cubical-aka-Moltar said:

    The Expedition has been the Tahoe competitor for 20+ years; I don't think the Explorer has ever been positioned against the Tahoe...

    I always pictured the Suburban & Expedition as competitors : 123-in WB vs. 130-in, whereas the Tahoe is 116-in WB and the Explorer is 113". Suburban & Expedition are also both the top size SUVs.

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    13 minutes ago, balthazar said:

    I always pictured the Suburban & Expedition as competitors : 123-in WB vs. 130-in, whereas the Tahoe is 116-in WB and the Explorer is 113". Suburban & Expedition are also both the top size SUVs.

    The Expedition has two wheelbases, the shorter wheelbase regular model, and the long wheelbase Max (formerly EL).   The short wheelbase one is the Tahoe competitor, the Max competes w/ the Suburban. 

    Edited by Cubical-aka-Moltar
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      Reimagine will see Jaguar Land Rover right-size, repurpose and reorganise into a more agile operation. The creation of a flatter structure is designed to empower employees to create and deliver at speed and with clear purpose.
      To accelerate this efficiency of focus, the company will substantially reduce and rationalise its non-manufacturing infrastructure in the UK. Gaydon will become the symbol of this effort – the ‘reactor’ of the business - with the Executive Team and other management functions moving into the one location to aid frictionless cooperation and agile decision-making.  
      Leapfrog to leadership with Tata Group
      In order to realise its vision of modern luxury mobility with confidence, the company will curate closer collaboration and knowledge-sharing with Tata Group companies to enhance sustainability and reduce emissions as well as sharing best practice in next-generation technology, data and software development leadership. Jaguar Land Rover has been a wholly-owned subsidiary of Tata Motors, in which Tata Sons is the largest shareholder, since 2008.
      “We have so many ingredients from within. It is a unique opportunity,” said Mr Bolloré. “Others have to rely solely on external partnerships and compromise, but we have frictionless access that will allow us to lean forward with confidence and at speed.”
      Bringing all these ingredients together, Jaguar Land Rover is on a path towards double-digit EBIT margins and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025. 
      Ultimately, Jaguar Land Rover aims to be one of the most profitable luxury manufacturers in the world.
      Mr N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Jaguar Land Rover Automotive plc commented: “The Reimagine strategy takes Jaguar Land Rover on a significant path of acceleration in harmony with the vision and sustainability priorities of the wider Tata Group. Together, we will help Jaguar realise its potential, reinforce Land Rover’s timeless appeal and collectively become a symbol of a truly responsible business for its customers, society and the planet.”
      Mr Bolloré concluded: “As a human-centred company, we can, and will, move much faster and with clear purpose of not just reimagining modern luxury but defining it for two distinct brands. Brands that present emotionally unique designs, pieces of art if you like, but all with connected technologies and responsible materials that collectively set new standards in ownership. We are reimagining a new modern luxury by design.”

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