Ford Cancels Mexican Plant but Is Still Moving Small Car Production
Ford Motor Co. announced Tuesday it has scrubbed plans to build a new $1.6 billion assembly plant in Mexico, a project that had been spotlighted by then-candidate Donald Trump, especially after Ford said it would move small car production from the U.S. into that new factory.
But while the move is being hailed by some as a victory for the president-elect, a closer look at the announcement, made by senior Ford executives at a suburban Detroit assembly plant, did not actually reverse the central decision the automaker announced last April.
Small car production, such as the compact Focus model, will still move to Mexico, just into an existing Ford plant in Hermosillo.
And while Ford will use some of the savings from the planned Mexican plant to expand its factory in Flat Rock, Michigan, that project appears likely to have happened anyway. The maker's new body shop and expanded assembly line will handle production of two new battery-based models that were not expected to be built in Mexico, anyway.
http://www.nbcnews.com/business/autos/ford-cancels-mexican-plant-still-moving-small-car-production-n702761