In 2015, Ford said it planned on moving production of its Ford Focus and C-Max cars to another country by 2018.
Advertisement
“We will have migrated all of our small-car production to Mexico and out of the United States” over the next two to three years, CEO Mark Fields told Wall Street analysts at an investor conference hosted by the automaker.
The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Jeff Schott, an expert on trade at the Peterson Institute for International Economics in Washington, countered that these agreements can reduce costs for US exporters, as well. Ford also will place “a high priority on stable and sustainable dividends”, Fields said.
In a report published last month, Swiecki and a colleague estimated that the labor to assemble a Ford Fusion would cost about $600 less in Mexico than in MI.
Ford Motor Co. has announced that they will move the production of small cars from the U.S.to Mexico as a means to reinvent the automobile market’s business in the hopes of cutting production costs and increase profitability. “That plant will remain open and actively producing vehicles in America”.
GM has outlined plans to use its alliance with Lyft to place electric and autonomous vehicles in ride services fleets, while expanding auto sharing through its Maven brand. It would include new models in segments such as commercial vehicles, trucks, SUVs and performance vehicles. “Autonomous vehicles will account for one of every 10 miles traveled by 2025”. For example, Field said the current Ford Focus can be ordered in 300 configurations of options and colors.
Ford announced a year ago that US production of the Focus and C-Max would end in 2018, but did not say where those models would go.
SUVs will allegedly still be made on homeland soil, as they are among the better-selling vehicles due to their spacious interior and off-road abilities.
Further, Ford revealed several targets, including delivering growth in line with or more than the global GDP, delivering operating margin of at least 8% in the core business and at least 20% in emerging businesses.
Fiat Chrysler Automobiles also wished to follow suit to Ford Motor Co.’s cost-cutting moves as they had declared that they will stop auto productions in the U.S.by the end of this year.
Advertisement
“Our capital allocation continues to be disciplined and to deliver strong returns, and we are fully prepared for a downturn”, Chief Financial Officer Bob Shanks said in Wednesday’s statement.
