FIRST AIRED: April 26, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:02
>> The Beijing Motor Show is the place for automakers to make a splash in China, the world's biggest car market. For US brands like Ford, this year's show comes at an even more crucial moment. Storm clouds are gathering with the looming threat of a trade war between the United States and China.
00:00:20
That's just as they try to go for gold with cars like this, the Aviator, the latest from Ford's premium brand, Lincoln. Reuters' Joe White took a peek inside.>> I'm sitting in a vehicle of the sort that Chinese consumers just love. They love SUVs with lots of room in the back.
00:00:39
And in the front, shiny metal, beautiful sound systems, big screens for connectivity to the internet. Lincoln thinks they can really make a splash with this vehicle, but here's the problem. What happens if, in 2019, when Ford wants to start selling this vehicle here, in China, there's a trade war between the United States and big tariffs on US made vehicles like this one?
00:00:58
>> While they're not in play yet, tit for tat tariff threats between China and the US could make importing vehicles like this to China an expensive proposition. Right now, Ford pays a 25% tariff to sell us made cars in China.>> That's why Ford is looking carefully at moving production or putting production of this vehicle in China.
00:01:19
The company has said that it plans to start localizing SUV production in China next year, 2019. They haven't said which vehicle. This one is certainly a good candidate. And Ford's rivals are looking to doing exactly the same thing.