Ford cancels $1.6 billion Mexican auto plant; will invest in Michigan instead

Ford CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment being created by Donald Trump. — [ VIDEO ]

 

via CNN:

Ford cancels Mexico plant. Will create 700 U.S. jobs in ‘vote of confidence’ in Trump

January 3, 2016

Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford (F) CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment being created by Donald Trump. However, he stressed Ford did not do any sort of special deal with the president-elect.

“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars.

The news is a major U-turn for Ford. Last year, the company announced it would invest $1.6 billion in Mexico to transfer production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will instead expand its plant in Michigan.

“This is a vote of confidence” in Trump and the economy, said Fields. We are “encouraged by pro-growth policies, particularly reform around tax and regulatory policies.”

Trump repeatedly slammed Ford on the campaign trail, claiming the company was moving good manufacturing jobs from the U.S. to Mexico.[…]

“When that car comes back across the border into our country that now comes in free, we’re gonna charge them a 35% tax,” Trump told Fox in September. “And you know what’s gonna happen, they’re never going to leave.” (Read More)

 

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