“It basically boils down to how we deploy our resources,” Galhotra said. He added that because of the higher tariffs, the cost of the Focus Active “would be substantially higher” for U.S. buyers. The higher price would reduce its ability to compete in the American market. The company wanted to set the starting price of the Focus Active at about $20,000.
Still, higher tariffs weren’t the only consideration in Ford’s cancellation of the Focus Active in America. Galhotra said that even if the tariffs ended, the company would not change its decision.
Of the vehicles that Ford sells in the U.S., about 95 percent of them are made in North America. The company is watching NAFTA negotiations to see how relations with Mexico and Canada will affect its costs.
The Ford EcoSport SUV is made in India, and the Ford Transit Connect vans are made in Spain. Galhotra said, “At the moment we do not see any significant risk to those products.”
