Ford Cancelling Plan for New Small Car Plant in Mexico
January 03 2017 - 12:00PM
Dow Jones News
By Christina Rogers and John D. Stoll
Ford Motor Co. said Tuesday it is scrapping plans for a new $1.6
billion assembly plant in Mexico, instead choosing to build small
cars in an existing Mexican factory, and invest $700 million in a
Michigan facility that will build electric vehicles.
The move is a surprising turnaround for Ford after facing
criticism by President-elect Donald Trump for more than a year in
relation to its Mexico plan. Last month, Chief Executive Mark
Fields said it was looking to work with the incoming administration
on Mr. Trump's trade agenda, but indicated it was too late to
change its specific plan to build a new factory in Mexico.
The announcement comes just hours after Mr. Trump criticized
Ford rival General Motors Co. for sending some of its Chevrolet
Cruze production from Mexico to U.S. dealerships and paying no
taxes. Mr. Trump has used the auto industry as an example of why
the North American Free Trade Agreement needs to be retooled.
In a press release, Ford said it is canceling the plan for a
factory in San Luis Potosi and will instead build its Focus small
car in an existing facility in Hermosillo, Mexico. The Focus is
currently built in Wayne, Mich., and Ford has said new products are
slated for that plant but hasn't identified specific
nameplates.
The company, meanwhile, is looking to add 700 jobs at a plant in
nearby Flat Rock, Mich., so it can build new electric models,
including a hyrbid-electric version of the iconic Mustang and
Lincoln Continental.
Ford said it would launch a fully electric SUV capable of at
least 300 miles of range, and two new police vehicles that run on
batteries.
Write to Christina Rogers at christina.rogers@wsj.com and John
D. Stoll at john.stoll@wsj.com
(END) Dow Jones Newswires
January 03, 2017 11:45 ET (16:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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