Ford cancels plan for Mexican plant

Ford Motor Company is dropping its plan to build a US$1.6 billion small car manufacturing plant in San Luis Potosi, Mexico.

Ford also announced it plans to invest about US$700 million in a Michigan factory that will build high-tech autonomous and electric vehicles. The Detroit-based automaker said it will add 700 direct new jobs at its Flat Rock (Michigan) Assembly Plant, which will build a small sport utility vehicle with extended battery range, a fully autonomous vehicle for ride-hailing or ride-sharing, and the Ford Mustang and Lincoln Continental.

In April 2016, Ford revealed plans to build the plant in Mexico’s San Luis Potosi state, a decision that was criticized by Donald Trump during last year’s U.S. presidential primary campaign. While Ford did not indicate Trump had any role in its decision to cancel the plant, in a statement released Jan. 3, Ford president and CEO Mark Fields said Ford is “encouraged by the pro-growth policies” President-elect Trump and the new Congress have committed to.

“We believe that these tax and regulatory reforms are critically important to boost U.S. competitiveness and, of course, drive a resurgence in American manufacturing and high-tech innovation,” Fields added at a Jan. 3 press conference in Flat Rock.

Fields also reiterated that Ford would continue with its plan to build its new Focus small car at an existing plant in Hermosillo, Mexico, in order to boost company profitability.