China to Import U.S.-Made Ford Mavericks Under an Agreement Between Beijing and Washington

SHANGHAI October 29, 2004; The AP reported that Ford Motor Co. will start exporting its Maverick sports utility vehicle to China under an agreement between Beijing and Washington intended to boost U.S. exports, Ford said Friday.

The SUVs, produced at a Ford plant in Kansas City, Missouri, will be priced at 288,000 yuan (US$34,850; euro 28,500) each and will be sold through more than 100 Ford brand retail dealers in China, the company said in a statement.

The policy will help Ford sell the SUVs -- called the Escape in the United States -- in China at a more competitive price.

The Maverick, introduced in China in July 2003, was previously sourced from Taiwan and sold in China for 428,000 yuan (US$51,800; euro 42,300).

The new imports are part of a deal to buy more U.S. products that China signed during a buying mission to the United States in November 2003.

China also promised to buy cars and auto parts from General Motors Corp. and DaimlerChrysler AG.

The "buy USA" deal is part of efforts to trim the United States' soaring trade deficit with China, which last year hit US$124 billion (euro 96.9 billion) -- an all-time high for any country -- and is expected to reach US$140 billion (euro 109.4 billion) this year.

The preferential policy doesn't give the car makers a break on import tariffs, but it allows them to bring in the cars without import permits.

While import permits in China aren't expensive, only a limited number of them are usually issued to trading companies, and consumers hoping to buy imported cars often acquire the permits on the black market where they can sell for as much as US$12,000 (euro 9,400).

Ford said last year it could send 5,000 vehicles, mostly SUVs, to China under the agreement.