Tariffs leave global automakers vulnerable to Chinese competition, warns Ford vice chair [USA TODAY]
Ford Motor Company (F)
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Source: USA TODAY
Ford's China business made $900 million in earnings before interest and taxes last year. For John Lawler, Ford Motor Co.'s vice chair, tariffs present a threat to the North American automotive industry — but not its greatest. The real threat right now is China, he said, and tariffs only worsen domestic automakers' ability to fight off future competition. Not only do tariffs put the U.S. at a short-term disadvantage; Lawler said on a Bank of America conference call April 16 that they irreparably harm any other automaker's ability to do business in North America once Chinese automakers arrive. “I don't think we can say no, they're not going to come to the U.S.,” he said. “The Chinese are coming, and they are a force to reckon with.” Profits drying up China once served as a haven for global automakers to lower costs and generate enough capital to fund costly innovation projects in the U.S. But both Ford and its crosstown competitor General Motors are working to restructure C
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