He added that Ford would have to pay a 35% tax on any auto that comes back to the US if he becomes president. The recall covers certain Ford Taurus and Police Interceptor sedans, Ford Flex wagons, Lincoln MKS sedans and Lincoln MKT SUVs from the 2013 through 2015 model years.
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Ford’s plan to shift Focus production to Mexico means GM will be left as the only major USA automaker still building small cars on its home soil.
Talking to investors in Dearborn, Michigan on Wednesday, Fields said the move was part of the plan to make production simpler and less costly.
This week, Ford Motor Company confirmed that over the next several years, all North American small-car production will be shifted south of the border to Mexico.
The company also added it would move all of its small-car production from Detroit to Mexico within three years. General Motors, Honda, Hyundai, Nissan, Mazda, Toyota and Volkswagen have all announced plans to either expand existing plants or build new ones in Mexico in recent years. Fields has responded that Ford invests far more in the US, and needs to make sure it can build its smallest vehicles profitably.
Small vehicles are the most price-sensitive cars so any cost savings offer competitive advantages, said Jack Nerad, an analyst with Kelley Blue Book.
“It used to be cars were made in Flint and you couldn’t drink the water in Mexico”, said Trump.
Fields said that Ford planned to shift a majority of its small auto production around the world to low-priced countries by 2019, which could affect Ford’s Western European vehicle production. “These ridiculous, job-crushing transactions will not happen when I am president”, Trump said.
“We expect Ford’s performance to be strong through 2018 – with our core business improving, allowing us to invest in the emerging opportunities that will ensure our future success”, he said in a prepared statement. The United Auto Workers Union said at the time that Ford planned to build the next Focus in Mexico.
“Bill Clinton’s NAFTA guaranteed the wholesale exodus of USA automobile manufacturing to Mexico”, said Curtis Ellis, Director of the American Jobs Alliance.
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The company estimates that 2016 results will be US$10.2 billion, 5.5 per cent lower than last year’s record 10.8 billion. Republican presidential candidate Donald Trump has been critical of Ford for building vehicles in Mexico.
