United States auto manufacturer Ford plans to move all of its remaining small vehicle production to Mexico from the USA within the next two years.
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“He’s trying to impose costs on US manufacturing that will make them less competitive”, Schott said.
A Ford representative told CNN the company plans to transfer production of other vehicles to the Wayne facility, and that no USA -based jobs will be lost as a result of the move.
Ford also has previously declined to confirm that the Focus compact auto and Ford C-Max hybrid and plug-in cars are the nameplates it will make in Mexico.
Ford a year ago said it would move C-Max and Focus production out of MI, then announced a $1.6 billion small-car factory in Mexico, but the company waited until now to announce the obvious connection. He added that Ford would have to pay a 35% tax on any vehicle that comes back to the USA if he becomes president.
Ford’s declaration came as CEO Mark Fields sought to appeal to investors. Ford said Wednesday, Aug. 24, 2016, the company is recalling more than 88,000 cars and SUVs because the engines can stall without warning due to a fuel pump problem.
The presidential candidate has been criticizing Ford’s Mexican investments for more than a year.
The company also added it would move all of its small-car production from Detroit to Mexico within three years. It comes as the USA auto industry’s six-year recovery is cooling and Britain’s exit from the European Union is presenting a new challenge to Ford’s rebound in Europe.
After Focus production moves to Mexico, Ford will move the production of other vehicles into the Wayne., Mich., plant where the Focus is now made, Ford spokeswoman Kelli Felker said.
Automakers also locate new plants in Mexico because it has far more trade agreements than the United States, meaning that automakers can avoid paying burdensome tariffs on cars manufactured in Mexico. We’re sticking with the juicy margins on much larger vehicles.
The company first announced the plan previous year.
“This is very different thinking for us”, Fields said. The deal is set to create or retain 8,500 jobs within the company.
Ford can build the cars for less money by paying lower wages in Mexico.
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The production of the brand’s flagship models such as their SUVs, trucks, and vans, along with other models which are not deemed to be small cars will continue to be produced in MI, U.S.
