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Ford on Tuesday announced it would be dumping its earlier plans for the establishment of a new plant in San Luis Potosi, Mexico, that would have cost the U.S. carmaker a whopping $1.6bn . Instead of the plans, Ford said it would now splash a modest $700 million out of the $1.6bn initially planned for the new Mexico plant on its Flat Rock Assembly Plant in Wayne, Michigan, where Focus is currently being manufactured , thus protecting about 3,500 U.S. jobs.
The American auto maker however added that, “to improve company profitability and ensure the financial as well as commercial success of this vehicle,” the next-generation Focus will be built at an existing plant in Hermosillo, Mexico, explaining that this will make way for two new iconic products at the Michigan facility.
And to support its vision for the new era of vehicles, Ford said it would be adding 700 direct new U.S. jobs and investing the $700 million within the next four years, creating the new Manufacturing Innovation Center at its Flat Rock Assembly Plant in Michigan.
According to the automaker, employees there will build the all-new small utility vehicle with extended battery range as well as the fully autonomous vehicle for ride-hailing or ride-sharing – along with the iconic Mustang and Lincoln Continental.
Though observers believe that the decision to jettison the earlier plans was the result of the criticism by U.S. President-elect, Donald Trump, vice president, United Automobile Workers (UAW), National Ford Department, Jimmy Settles, is quite excited at the announcement.
“I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers,” he was quoted as saying, adding, “The men and women of Flat Rock Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success with a new generation of high-tech vehicles.
And Ford’s chief executive, Mark Fields, also confirmed that the new direction is in keeping faith with Trump’s policies. Citing a ”dramatic decline for the demand for small cars here in North America,” and allowing Ford to cope with its existing plant, Fields, told the BBC that the decision was also informed by ”more favourable US business environment that we see under President-elect Trump and some of the pro-growth policies that he’s been talking about.”
According to Fields, ”That did play a part and it’s a vote of confidence that he (Trump) can deliver on these things.”
