Ford cancels $1.6 billion plant in Mexico; announces 700 new jobs in Flat Rock, MI

Ford Motor Co. (Dearborn, MI) confirmed that the company is investing $700 million and adding 700 direct new jobs in the Flat Rock, MI, assembly plant to produce high-tech electrified and autonomous vehicles—plus the iconic Ford Mustang and Lincoln Continental.

Additionally, the company announced the cancellation of plans for a new $1.6 billion plant in San Luis Potosi, Mexico. Ford will build its next-generation Focus at an existing plant in Hermosillo, Mexico, to improve company profitability.

The moves are part of a $4.5 billion investment in electrified vehicles by 2020, offering customers greater fuel efficiency, capacity and power across Ford’s global vehicle lineup, said Ford’s information. The plans are part of the company’s expansion to be an auto and mobility company with leadership in electrified and autonomous vehicles and mobility solutions.

“As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people’s lives better,” said Mark Fields, Ford President and CEO. “Our investments and expanding lineup reflect our view that global offerings of electrified vehicles will exceed gasoline-powered vehicles within the next 15 years.”

Ford is focusing its EV plan on its areas of strength—electrifying its most popular, high-volume commercial vehicles, trucks, SUVs and performance vehicles to make them even more capable, productive and fun to drive, said the company.

Ford had announced on Oct. 17, 2016, that it would temporarily shutter four plants—two in the United States (Kansas City and Louisville, KY) and two in Mexico (Hermosillo and Cuautitlan)—to match production with demand and meet year-end inventory targets.

According to Autodata Corp., Ford Fusion sales were down 9.1% through September; Lincoln MKZ sales were down 0.4%; and Ford Fiesta sales dropped 28%.

Following a tweet from President-elect Donald Trump threatening border tariffs if the company began importing the Chevrolet Cruze sedan vehicle from the GM plant in Ramos Arizpe, GM’s stock took a hit. GM makes the majority of its Cruze vehicles in Lordstown, OH, but to meet demand the company wants to import the sedan model from its Ramos Arizpe facility, where it currently makes the Cruze hatchback, which it ships to the United States.