Ford cancels Mexico plant, expands U.S. factory and adds 700 jobs

[Jim Oaks]

Ford Motor announced Tuesday that it would cancel plans for a $1.6 billion Mexico plant and launch a Michigan expansion in a move that may be viewed as a capitulation to Donald Trump.

Ford CEO Mark Fields said the company would spend $700 million and add 700 jobs to "transform and expand" its Flat Rock, Mich. manufacturing plant to make autonomous and electric vehicles.

"Make no mistake about it — Ford is a global automaker but our home is right here in the United States," Fields said at a press conference.

Trump blasts GM for Mexican-made Chevy Cruze

The move marks a sharp reversal for Ford, which has defended its production in Mexico even as Trump has assailed the company for expanding there.

"This is a vote of confidence for President-elect Trump and some of the policies he may be pursuing," Fields said.

To be sure, Ford acknowledged that it would still move production of the next-generation Focus sedan to Mexico, as previously announced. But it will be built at an existing plant in Hermosillo, Mexico, not at a new facility.

President-elect Donald Trump is going after General Motors giving them an ultimatum when it comes to manufacturing across the border. Veuer's Nick Cardona tells us what the President-elect had to say. Buzz60

The United Auto Workers hailed the decision.

"We've seen our jobs go overseas," UAW Vice President Jimmy Settles said. "It's evident today that Ford is rewarding us for our hard work."

Others will view the move as a bid to satisfy Trump, who has cited Ford's Mexico expansion as a key example of how the North American Free Trade Agreement has weakened American manufacturing.

Ford Executive Chairman Bill Ford called Trump this morning to inform the president-elect of the decision, and Fields called incoming Vice President Mike Pence.

"Automakers are facing a situation where they have to consider the political consequences" of all their decisions, AutoTrader.com analyst Michelle Krebs said.

It's complicated: Trump, automakers have love-hate relationship

Ford's expansion will convert 700 temporary jobs at the Michigan plant into permanent positions, adding to an existing hourly staff of about 3,600. Fields said the automaker will add about 200 jobs at its plant in Hermosillo, Mexico, to make the Focus but did not say how much it would invest.

The Michigan expansion plans are part of a broader $4.5 billion investment in electric vehicles and hybrids, including 13 new models over the next five years.

Those vehicles include a small, electric sport-utility vehicle with 300 miles of battery range, which will be exported overseas, and a "high-volume autonomous vehicle designed for commercial ride-hailing or ride-sharing," Ford said in a statement.

The company will also manufacture a hybrid version of the F-150 pickup truck by 2020 at the Dearborn, Mich., plant, where the F-series lineup is currently manufactured.

 

[wildbill23c]

So maybe they'll build the new Ranger in the US?

 

[85_Ranger4x4]

So maybe they'll build the new Ranger in the US?

It was the plant manager that spilled the beans that it is coming back.

 

[don4331]

It was the plant manager that spilled the beans that it is coming back.

Or Mr. Trump will make a post similar to the Chev Cruze one and the Focus will stay in its current plant and Ranger won't be build at all...

 

[wildbill23c]

I really doubt the Ranger will come back to the US. Ford knows if it does the sales of their F-150 will plummet. That's why the ranger was discontinued in the US in the first place was people were buying the Rangers and it was hurting the F-150 sales.

 

[85_Ranger4x4]

I really doubt the Ranger will come back to the US. Ford knows if it does the sales of their F-150 will plummet. That's why the ranger was discontinued in the US in the first place was people were buying the Rangers and it was hurting the F-150 sales.

It has been announced both it and the Bronco are returning. No word exactly what we are getting though.

The Ranger was discontinued because it was an over 10 year old design that cost about the same as an F-150 and nobody bought them.

 

[JoshT]

The Ranger was discontinued because it was an over 10 year old design that cost about the same as an F-150 and nobody bought them.

I think they also though dropping the ranger would drive those fleet truck sales up to the F-150. Instead I've seen those fleet truck purchasers leave Ford and/or move to compact/economy cars to fill the requirements.

 

[85_Ranger4x4]

I think they also though dropping the ranger would drive those fleet truck sales up to the F-150. Instead I've seen those fleet truck purchasers leave Ford and/or move to compact/economy cars to fill the requirements.

Same here, people that want little trucks get little trucks.

 

[stmitch]

It has been announced both it and the Bronco are returning. No word exactly what we are getting though.

I haven't seen any official announcement from Ford that either one will be returning; just speculation from a UAW guy. Did I miss something?


As far as the new Pres' impact, I think it's irrelevant to this situation. Ford saw that small car sales are plummeting, so it doesn't make sense to invest over a billion dollars into a new plant to build small cars right now.

 

[85_Ranger4x4]

I haven't seen any official announcement from Ford that either one will be returning; just speculation from a UAW guy. Did I miss something?

It was someone involved with running the plant that leaked it. And Ford put copyright protection on both names.

And then bobbywalter has been reporting test mules in heavy camo running around Detroit.

Sounds pretty promising.

 

[stmitch]

Ford must've read this discussion, because they just made an official announcement that both the Ranger and Bronco are returning in 2019/2020.

http://truckyeah.jalopnik.com/a-new...ource=jalopnik_facebook&utm_medium=socialflow

 

[Andy D]

The Ranger was the smallest pick up on the mkt at the time of its end. Nearest thing was a Transit connect commercially. or a car. There is a niche for a small Pick up that is wide open for somebody to exploit . A hybrid Ranger ? Build in capacity to run as standby AC generator?