Ford Motor Co. will not hike prices of imported Ford and higher-margin luxury Lincoln models in China, despite additional tariffs on U.S vehicles that will come into effect July 6, Reuters reported July 5, citing a company statement.
The newswire said the automaker's move will reduce the profit margins on its imported cars.
Reuters added that most of the Ford vehicles in China are made locally through its joint ventures, while all Lincon vehicles that Ford sells in China are imported from North America. Ford shipped about 80,000 vehicles last year to China from North America, of which more than half were its upper-end Lincolns, including the Lincoln Continental sedan and the Lincoln MKX crossover SUV.
Ford and Lincoln had reportedly cut prices on imported models in May after China announced tariff cut for automobiles and car parts that came into effect July 1.
In June, German automaker Daimler AG also lowered its earnings guidance and said it expects lower SUV sales and increased costs at its Mercedes-Benz Cars division due to higher tariffs on vehicles imported to China from the U.S.
The Alliance of Automobile Manufacturers, which represents General Motors Co., Ford, Daimler and Toyota Motor Corp., among others, have urged the Trump administration not to push through with the auto tariffs, saying they would harm economic security and weaken the country's national security.