Ford Motors cancels $1.6bn Mexico plant


US car giant Ford has said it will cancel a $1.6bn plant it planned to build in Mexico but will extend its operations at its factory in Michigan.
Ford will invest $700m on expanding its plant at Flat Rock, Michigan.
It says it will build its new Focus at an existing plant in Hermosillo, Mexico, to improve profitability.
Earlier, President-elect Donald Trump tweeted his disapproval of rival General Motors’ production of a Chevy Cruze model in Mexico.


How do we know this will translate into more jobs? I understand much more will be automated.


The industries seem to be very sensitive to the national environment and are picking up the MAGA meme.


It’s my understand that the Mexico plants are used to build smallish cars with high MPG because they’re not a profitable product. They’re more or less mandated by CAFE standards for mileage. Americans prefer bigger cars that are more profitable, so the little ones have to be built very cheaply to induce people to buy them at all, just to keep the auto makers’ mileage “average” higher than it would otherwise be.

If that’s all true, then maybe CAFE standards need to be revisited.


How do we know it won’t? Let’s give it a chance and see what happens.


We should be preparing now for our predictable future.

Lovely picture of a contemporary automobile manufacturing plant in the link.


I found this deeper in the article:

Ford is not abandoning production completely in Mexico, but is switching production of its Focus model to its existing plant in Hermosillo there to improve profitability.

It makes the current version at its plant in Wayne in Michigan. Production at that facility will switch to two new models, which it says will safeguard 3,500 US jobs

The planned $1.6bn plant in Mexico was to be built in San Luis Potosi, but Ford said it would now invest some of that sum in Flat Rock, creating 700 jobs building a range of electric cars.


If it’s okay with you, I won’t touch the stock.


No skin off mine, bud.



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