Ford Motor is scrapping a $1.6-billion planned plant in Mexico, the company announced Tuesday.
The automaker said that it will invest $700 million to expand its Flat Rock Assembly Plant in Michigan. The investment will create 700 direct new jobs during the next four years.
Ford plans to create the new manufacturing innovation center at its Flat Rock plant where the fully autonomous vehicle for ride-hailing or ride-sharing – along with the iconic Mustang and Lincoln Continental. The company will also build the all-new small utility vehicle with extended battery range.
Ford said that it is cancelling a planned factory in San Luis Potosi, Mexico. The automaker added that the next-generation Focus will be built at an existing plant in Hermosillo, Mexico.
President-elect Donald Trump had criticized Ford’s plans to build a plant in Mexico. Trump welcomed the company’s announcement. He tweeted a link to the company’s statement with a message:
“Instead of driving jobs and wealth away, AMERICA will become the world’s great magnet for INNOVATION & JOB CREATION.”
Speaking at an event at the Flat Rock plant, Ford CEO Mark Fields said that Trump’s policies were vital to the automaker’s decision. “We believe these tax and regulatory reforms are necessary to boost U.S. competitiveness,” the CEO said.
Commenting on Ford’s plans to create 700 jobs, UAW Vice President Jimmy Settles said: “I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers. The men and women of Flat Rock Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success with a new generation of high-tech vehicles.”
In addition, Ford announced that it will add two new unspecified products at its Michigan Assembly Plant in Wayne, Michigan. The automaker also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020.
Investors seem to be happy with Ford’s decision, with the company’s shares gaining over 3.70%. During the last 12 months, the stock dropped by more than 10%.
Source: Fox News, Ford Motors