Logo of Phnom Penh Post newspaper Phnom Penh Post - Ford mulls more China production

Ford mulls more China production

Content image - Phnom Penh Post
Joseph Hinrichs speaks at a press conference at the 2017 North American International Auto Show in Detroit, Michigan. AFP

Ford mulls more China production

FORD is looking at speeding up plans to build more Lincoln models in Chinese plants amid the growing trade war with the United States that has made US exports less attractive, a senior executive said Monday.

Joseph Hinrichs, Ford’s executive vice president for global operations, said he did not see any easy resolution to the trade dispute between the United States and China.

President Donald Trump on Monday imposed tariffs on an additional $200 billion in Chinese goods, prompting swift retaliation from Beijing on $60 billion in US products.

“We have long been advocates for balanced and free trade,” Hinrichs said. “We continue to encourage both the US administration and the Chinese government that it’s in everyone’s interest to work out their differences.”

But, he said, “I believe this US-China discussion will go on for a while.”

The increasing exchange of tariffs makes it difficult to plan for the future and with tariffs on vehicles exported to China now reaching 40 per cent there is no business case for exporting vehicles from the United States, he said.

“China is a core businesses for us,” he said, but added, “You’re talking about two very powerful economies so we’re going to have to plan accordingly.”

The company has been planning to launch new vehicles in China to halt its recent slide in that market, he said.

Ford recently announced it was scrapping plans to import the compact Focus model from Chinese plants into the US market due to the tariffs.

Hinrichs also said he hoped a breakthrough on a revised North American Free Trade Agreement could be achieved this week on the sidelines of the United Nations General Assembly in New York to keep Canada in the continental trade pact.

“We need a three-way auto agreement,” Hinrichs said, noting that the deal struck last month between the United States and Mexico could serve as a basis for a more complete agreement that includes Canada.

“I’m worried a little bit that time will catch up with us,” he said at a luncheon, noting that he had spent more time in Washington DC working on trade issues than ever before.

US and Canadian negotiators have spent more than a month trying to resolve remaining differences after Washington sealed a tentative deal with Mexico City which they intend to sign by December 1, when a new government takes office.

The auto industry is key to NAFTA and the free trade deal is critical to the North American supply chain.

Hinrichs said that while “the language of US-Mexico trade agreement should work for Canada” in the auto sector, the remaining sticking points centered on other topics like timber, dairy and cultural issues.

MOST VIEWED

  • PM to vet NY holiday dates

    The Ministry of Economy and Finance submitted a letter to Prime Minister Hun Sen asking him to formally set a five-day national holiday from August 17-21 to make up for the Khmer New Year holiday in April that was postponed. Finance minister Aun Pornmoniroth sent

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea