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Ford Cancels Plans for Mexico Plant, Invests in Michigan

January 03, 2017

Ford has canceled plans for a $1.6 billion plant to be built in Mexico and is now investing $700 million in production at its Flat Rock Assembly Plant in Michigan.

The plans to build a plant in San Luis Potosi, Mexico, were scrapped in place of Ford adding 700 direct new U.S. jobs, along with the $700 million, during the next four years. These tie to “pro-growth policies” that are championed by President-elect Donald Trump, according to Fox News. After Ford made the announcement, Trump tweeted a link to a story about the automaker's decision.

The money will go into creating a new Manufacturing Innovation Center at its Flat Rock Assembly Plant where employees will build a fully electric SUV as well as a fully autonomous vehicle for ride-hailing or ride-sharing, according to the automaker. This factory is also where the Mustang and Lincoln Continental are manufactured.

Ford CEO Mark Fields said confidence and the desire to make the most of the existing plant prompted the expansion of the assembly plant, according to the New York Times.

Ford also announced the next-generation Focus will be built at an existing plant in Hermosillo, Mexico, which will make way for two new products at Michigan Assembly Plant in Wayne, Mich., where the Focus is manufactured, according to the automaker.

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