DETROIT-Ford Motor said Wednesday that it shifting all of its USA small vehicle production to Mexico, a development that drew fresh criticism from Republican presidential nominee Donald Trump.
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The small cars Ford is shifting to Mexico are less popular and less profitable models. Here, a lineup of Ford Focus vehicles is seen on an assembly line at the Ford Michigan Assembly Plant in Wayne, Mich.
Donald TrumpDonald TrumpSnoop Dogg: “I never seen a motherf–er” like Trump Quinnipiac poll: Trump halves Clinton’s lead WATCH: Trump surprises Dr. Oz with physical exam results MORE has repeatedly denounced Ford’s investments in Mexico, arguing that the auto company is missing opportunities to employ American workers.
– WATCH IT, TESLA: Ford technology chief Raj Nair suggested that Tesla Motors’ semi-autonomous Autopilot system was put into public hands too early.
A Ford representative told CNN the company plans to transfer production of other vehicles to the Wayne facility, and that no US -based jobs will be lost as a result of the move.
Ford’s move will likely provoke more criticism from Donald Trump. It will make small cars there starting in 2018.
Ford expects that its 2017 profit will fall below the $10.2 billion estimated for this year due to spending on emerging new mobility opportunities and potentially higher material costs, executives told analysts and investors Wednesday. The company believes that autonomous vehicles could account for up to 20% of vehicle sales by 2030. He has criticized Ford’s Mexican investments for more than a year and vowed to pressure the automaker to reverse course if elected.
Ford shares were down 25 cents at $12.13 on Wednesday afternoon.
Until then, Fields said those ventures will be funded in part by Ford’s core business, including its high-volume, high-margin pickup trucks.
But he also said the company must respond to a global shift away from personal vehicle ownership to one in which personal ownership will be challenged by on-demand shared mobility.
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“This transaction is an absolute disgrace”, Trump said in an April statement, according to CNBC. “That’s why we are expanding to sell more vehicles and provide transportation services at the same time”. Mr. Fields said that investors and analysts should not “confuse activity with progress” as looking at large investments from its rivals is like “looking at the wrong scoreboard”. “We all recognize there is a huge problem in Mexico”.
