Ford Motor will move all USA production of its small cars to Mexico, chief executive Mark Fields confirmed Wednesday, despite criticism from Republican presidential nominee Donald Trump of the company’s plans for expansion south of the border.
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Ford now makes some Fiestas in Mexico, but has kept production for some of its Focus and C-Max models in suburban Detroit. (F – Analyst Report) announced its decision to gradually shift the company’s small vehicle production from the U.S.to Mexico.
World News – Ford announced Wednesday that it will move its entire small vehicle operation from America to Mexico.
Fiat Chrysler has also made similar moves, shifting vehicle production out of the U.S.in order to focus on pickups and SUVs in its domestic automaking operations.
Ford’s Michigan Assembly Plant will be getting new products under a contract signed previous year with the United Auto Workers union.
On Wednesday, Ford announced that it expects profits to decline in 2017 due to “increasing investments and costs for emerging opportunities”, although the company also said that this will soon turn around.
Last week Ford reduced its previous 2016 profit forecast from $10.8 billion, citing the cost of an expanded recall of now 2.4 million vehicles in North America for a door latch defect. Ford announced past year it would end production of those vehicles in the U.S.in 2018, but until now has not confirmed where they would go. “We’re dedicated to putting autonomous vehicles on the road for millions of people, not just those who can afford luxury cars”.
Ford has begun framing itself as a mobility company rather than a mere vehicle company, and it has emphasized the point recently by announcing ventures to provide cities with electric-bicycle services and shuttle services.
“Usually when we had to do it, our backs were up against the hot pipes and we were in crisis”, Fields said.
“Within the next two to three years, the majority of our small vehicles will be produced in low-priced areas”, Fields told investors at an event on Wednesday. Republican presidential candidate Donald Trump has been critical of Ford for building vehicles in Mexico.
Ford stock fell 1.9 percent to close at $12.14.
Previously, the company had confirmed its plans to shift the production of its Focus and C-Max models from its Wayne, MI plant to Mexico. “Theyll make their cars, theyll employ thousands of people, not from this country and theyll sell their auto across the border”, Trump said. The changes are expected to be completed by early 2018. The high-performance Ford Focus RS is made in Germany.
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The union has indicated the shift to Mexico is not likely to have a meaningful impact on USA employment.
