Ford Cancels $1.6b Mexico Plant, Will Invest $700m In Michigan Plant Instead
On top of revealing a slew of new electric vehicles today, Ford also made a rather major announcement in that it will be cancelling plans to build a new plant in San Luis Potosi, Mexico. That planet was expected to cost $1.6 billion, but with that money now freed up, Ford will be investing some of it back here in the US. $700 million of that cash will go toward improving its Flat Rock, Michigan plant over the next four years, which is a significant investment.
To get a little more specific, Ford will use that $700 million to create its new Manufacturing Innovation Center at the Flat Rock plant. It's here that Ford will produce the new electric SUV announced today, along with the autonomous vehicles destined for ride sharing. The new Mustang and Lincoln Continental will also be produced here, so the Flat Rock plant will see a lot of action as we close in on 2020.
Ford says that this move will create 700 "new direct jobs" in Michigan. However, attention isn't being shifted away from Mexico entirely, as Ford also announced plans to produce the next-generation Focus at an existing plant in Hermosillo, Mexico. This will supposedly have a positive effect here in the US, though, as Ford says it will allow its Wayne, Michigan plant – which currently produces the Focus – to manufacture "two new iconic products."
It wasn't long before Michigan's government released a statement about Ford's decision to invest more money into its Flat Rock plant. "We are seeing the drive toward the next chapter of the state's legendary automotive history shift into a higher gear with Ford's announcement," said Michigan Governor Rick Snyder.
"In the next decade, Michigan will lead the world in reimagining transportation with the acceleration of next generation advanced technologies," Snyder continued. "We are excited that Ford has chosen Michigan as its innovative home for their fully electric and autonomous hybrid vehicles. Thank you, Ford, for your continued confidence in our state and our people."
Ford's decision to cancel the San Luis Potosi plant doesn't seem to be the product of any political pressure. As spotted by Nick Bunkley of Automotive News, Ford CEO Mark Fields reportedly told CNBC that this was a cost cutting measure, not a political move. "It became very clear that we didn't need this plant," Fields told CNBC.
We'll likely hear more about Ford's plans for its Flat Rock plant in the coming weeks and months, so stay tuned here for more. In the meantime, be sure to have a look at all of our CES 2017 coverage for more from the show – including details on all of the electric vehicles Ford announced today.
SOURCE: Ford