Automotive - - Jan 04,2017
Popular US car maker Ford Motor Co. will cancel its $1.6bn plan to build the Mexico plant and would extend operations at its Michigan factory.
Ford Motor Co. announced that it would cancel the company’s plan for a $1.6 billion Mexico plant and launch an expansion at its Michigan factory in a move that may be viewed as a capitulation to US President-elect Donald Trump.
Mr. Trump has criticized Ford Motors and its rival General Motors over production of car models in Mexico. Earlier on Tuesday, he tweeted criticism of General Motors’ production of its Chevrolet Cruze sedan model in Mexico.
The Chief Executive Officer of Ford Motor Co., Mr. Mark Fields, said that the company would spend $700 million and will add 700 jobs to transform and expand its Flat Rock factory in the Midwestern state located in the US. He further added at a press conference that Ford is an international automaker but its home is right here in the country.
Mr. Fields quoted that this is a vote of confidence for Mr. Trump and some of the policies which he plans to pursue in the near future.
US’s second-largest automaker, Ford believes electrified automobiles will overtake gas-powered cars within the next 15 years. Ford is also planning to roll out 7 new electrically powered automobiles in the next five years, counting a Hybrid of Mustang. The automobile company is not completely canceling production in Mexico but is swapping the manufacture of its Focus model to its active plant in Hermosillo to increase profitability.
United States President-elect, Donald J. Trump has pledged to change the tactics American top automakers use to do business. Less than three weeks before his swearing in as president, Mr. Trump has already knocked the corporations on their heels.