Ford Is Speeding Up Plan To Build Lincolns In China To Avoid Tariffs

Ford is accelerating its plan to start producing Lincoln models locally in China in order to avoid tariffs.

The company was originally planning to start production of Lincoln models in China in late 2019 along with a local partner but is currently trying to speed things up, even by the slightest, to help avoid the tariffs brought by the Chinese administration in retaliation to the measures taken by the US government.

“What we want to do is accelerate that,” Joy Falotico, head of Lincoln and Ford’s chief marketing officer, said during an interview with Bloomberg. “We will look for opportunities, but it’s a big undertaking and I think it won’t be a significant change in our plans.”

Lincoln is currently lacking the local production facilities most of its competitors have in China, so even a small move would help them improve their position in the world’s largest market for cars. US-built vehicles saw their prices soaring after China imposed 40 percent tariffs on them. Ford is currently absorbing some of the cost but Lincoln sales have slowed significantly in the region.

Lincoln revealed the new Aviator at the Los Angeles Auto Show, which is one of the three SUVs the brand is planning on launching in China in the second half of next year. Ford’s CEO Jim Hackett said that the US administration’s metals tariffs will cost the company around $1 billion in profit annually. Last August, Ford scrapped its plans to export the Focus Active from China to USA.

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  • LJ

    Adapt or die.

    • Belthronding

      darwin,is that you?

  • Ishliss

    Replace “Ford” with “GM” and watch the comment section go crazy about GM getting rid of American Jobs. Ford does it and nobody bats an eye.

    • lagunas3ca

      Where were you a year ago? Ford also never had to rely on a bankruptcy bailout by the government, costing US taxpayers $11 billion.

      • Ishliss

        Where were you in 2009?

        “Ford’s Bailout. Although Ford did not receive TARP funds, it did receive government loans. These were critical because banks were not lending during the financial crisis. It requested a $9 billion line-of-credit from the government”

        Ford took a loan, another fancy word for bailout.

        • lagunas3ca

          Ford’s bailout came in the form of equity and not a loan like GM’s. I suggest you understand the difference.

          • brn

            GM paid back the loan.

          • lagunas3ca

            Yes, but instead of paying it back with earnings, it was with TARP money that hadn’t been spent, leaving taxpayers with $11 billion of shares worth nothing.

  • Billy Lthr

    well ford looks like you are off my shopping list

  • Liam Paul

    Henry Ford would [email protected] bullets if he knew Ford Motor Company was giving jobs to people not from the USA. Shame on Ford

    • Stigasawuswrecks

      Well when stupid policies force you to do so to stay afloat then who’s at fault. It’s either they adapt to stay in business or they fold.

    • Rzrlf

      Henry Ford would loose his [email protected] regardless if saw how much ford embraces diversity in general

    • LeStori

      Ford currently exports just a few vehicles to China.

      Of the approx 939,000 Ford vehicles sold in China in 10 months during 2017, around 2% ( 19,000 ) were made in the USA. The rest were made in China.

      Similarly in Europe where most Fords are made “locally” .

      Henry Ford made the move to manufacture overseas . Ford Britain 1909. Ford Australia 1925 etc etc.

    • ➡️ProtectOurHeritage⬅️

      At least he died knowing that his depraved friends in Germany lost the war.

  • Galaxium

    It always made sense to build in China as well.

    It’s just that the tariffs now is boogeyman to blame for Ford doing this.

  • Tumbi Mtika

    Thanks, Donald.

    • brn

      So China increasing an already high tariff doesn’t also get your thanks?

  • brn

    Ford Is Speeding Up Plan transfer intellectual property to China

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