Before Donald Trump came along to play a role in politics, Ford had a plan in progress to shift production of one or more of its smaller cars from Michigan to a new San Luis Potosi plant in Mexico. At the time, Donald Trump wasn't President, but promised to stop such investments that didn't favor job creation in the US. Ford remained adamant the Mexico investment would happen, but then scrapped the idea in January.
That's good news for now President Trump, right? Wrong. Ford is no longer building its Mexico plant, but production won't remain in America. Instead, according to Tech Times, Ford is heading to China where it will save an estimated $1 billion manufacturing the Focus line.
Ford, as you'd expect, views this as a positive move just like they did the Mexico plant. By saving a billion dollars the US company has more to spend on growing in other areas, with "sport utilities, commercial vehicles, performance vehicles as well as mobility, autonomous vehicles and electrified vehicles" highlighted as areas of focus by Joe Hinrichs, executive vice president and president of global operations of Ford.
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The good news for Michigan workers is Ford doesn't see any jobs being lost. Focus production won't move to China until 2019 and the Michigan plant will be shifted over to Ranger pickup truck and Bronco SUV production from late 2018 and 2020 respectively. Investment also continues in the US, with Ford spending $900 million upgrading its Kentucky Truck Plant.
Of course, the obvious question asked by President Trump will be why Ford is going to China at all? The answer from Ford's point of view is clear: a billion dollar saving. For US consumers, it means choosing to purchase a Ford Focus after 2019 means you'll receive a car manufactured and shipped from China.
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