Ford Motor Company is canceling plans to build a new $1.6 billion plant in Mexico and is instead investing $700 million in a Michigan plant extension.
The company announced Tuesday the decision to expand the facility in Flat Rock, Mich., to build “high-tech autonomous and electric vehicles along with the Mustang and Lincoln Continental.” The company estimates the move will create 700 new jobs.
“As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people’s lives better,” said Mark Fields, Ford’s president and CEO.
“Our investments and expanding lineup reflect our view that global offerings of electrified vehicles will exceed gasoline-powered vehicles within the next 15 years.”
CNN reported the company informed President-elect Trump and Vice President-elect Mike Pence of the move Tuesday morning. Trump mentioned the planned plant in Mexico during campaign rallies before the election and threatened the company with tariffs on vehicles sold in the United States if the Mexican-made vehicles came to the U.S.
Fields told CNN Trump played no role in the decision to stay in Michigan.
“We didn’t cut a deal with Trump. We did it for our business,” Fields said.
However, Fields did say the move was partly caused by Trump’s economic agenda.
“We look at all factors, including what we view as a more positive U.S. manufacturing business environment under President-elect Trump and it’s literally a vote of confidence around some of the pro-growth policies that he has been outlining,” Fields said.
Among those policies are lessening regulatory burden on businesses, including fuel standards, and creating a positive investment climate for businesses.
Trump on Tuesday tweeted out a news story about the announcement. He wrote: “Instead of driving jobs and wealth away, AMERICA will become the world’s great magnet for INNOVATION & JOB CREATION.”
Instead of driving jobs and wealth away, AMERICA will become the world’s great magnet for INNOVATION & JOB CREATION.https://t.co/siXrptsOrt
— Donald J. Trump (@realDonaldTrump) January 3, 2017
On Tuesday, Trump threatened General Motors with increased taxes on Chevrolet Cruze models made in Mexico and sold in the U.S. The company responded with noting only a small number of hatchback Cruze models are made in Mexico and sold in the U.S., with all sedan models made in Lordstown, Ohio.
The company also announced in the same statement that it’s going to be building the next-generation Ford Focus at an existing plant in Mexico. The company argues this will allow a different Michigan plant, in Wayne, Mich. where the Focus is currently made, to make two new products.
That plant will not close and its 3,500 jobs will stay in Wayne.
