Ford Cancels Mexico Plant, Trump's Predictions Come True
The Ford Motor Company has announced that it is cancelling its plans to build a 1.6 billion dollar factory in Mexico. Ford has also added that it will invest a further 700 million dollars in its existing facility at Flat Rock in the state of Michigan where it will produce future products from the Ford lineup.
Follow us on
Highlights
- Trump stated that cars made in Mexico will be levied with a Border Tax
- Ford said the move was to fully utilise capacity at existing facilities
- Ford will invest 700 million dollars in its Michigan facility
The Ford Motor Company has announced that it is cancelling its plans to build a 1.6 billion dollar factory in Mexico. Ford has also added that it will invest a further 700 million dollars in its existing facility at Flat Rock in the state of Michigan where it will produce future products from the Ford lineup.
The announcement comes following a statement made by United States President elect, Donald Trump that stated that cars made in the country of Mexico will be levied with a Big Border Tax.
Trump has named the latest iteration of the Chevrolet Cruze as an example of a car that is made in Mexico but sells popularly in the United States and will be levied with the tax if General Motors does not shift its production back to the United States. Currently, the United States and Mexico have a trade agreement where taxes are not levied on products moved from Mexico to the United States.
Following the statement, Mark Fields, Chief Executive of Ford Motor Company mentioned how the move was to fully utilize capacity at existing facilities in the midst of slumping sales of smaller Ford products like the Focus and the Fusion. Mark Fields also endorsed the ‘pro-growth’ policies that Trump and the Republican-led Congress plans to put into play post January 20, 2017 when Trump officially becomes the President.
The investment and updates in the Flat Rock, Michigan plant will essentially be used to expand the line for a new electric SUV that Ford has in its books for 2020. This new SUV will have a range of over 480 kilometers and will take on the likes of Tesla and Volkswagen amongst others. The new factory will also build ford’s fully autonomous car which will be production ready for fleet usage in 2021. Ford also has plans to build a hybrid version of the F150 pickup, the Mustang and several police cars too to improve on its overall fuel economy and emissions ratings as a group. The updates to the factory will add close to 700 new jobs.
Incidentally, Donald Trump in his election campaign speeches has categorically mentioned how Ford’s new factory in Mexico was an “absolute disgrace” and that he would slap hefty taxes on to any Ford vehicles that will be made in Mexico. In one of his campaign speeches, Trump said "They’ll say,‘Mr. President we’ve decided to move the plant back to the United States — we’re not going to build it in Mexico.’ That’s it. They have no choice”. Looks like Donald Trump did accurately predict this one then.
The announcement comes following a statement made by United States President elect, Donald Trump that stated that cars made in the country of Mexico will be levied with a Big Border Tax.
Trump has named the latest iteration of the Chevrolet Cruze as an example of a car that is made in Mexico but sells popularly in the United States and will be levied with the tax if General Motors does not shift its production back to the United States. Currently, the United States and Mexico have a trade agreement where taxes are not levied on products moved from Mexico to the United States.
Following the statement, Mark Fields, Chief Executive of Ford Motor Company mentioned how the move was to fully utilize capacity at existing facilities in the midst of slumping sales of smaller Ford products like the Focus and the Fusion. Mark Fields also endorsed the ‘pro-growth’ policies that Trump and the Republican-led Congress plans to put into play post January 20, 2017 when Trump officially becomes the President.
The investment and updates in the Flat Rock, Michigan plant will essentially be used to expand the line for a new electric SUV that Ford has in its books for 2020. This new SUV will have a range of over 480 kilometers and will take on the likes of Tesla and Volkswagen amongst others. The new factory will also build ford’s fully autonomous car which will be production ready for fleet usage in 2021. Ford also has plans to build a hybrid version of the F150 pickup, the Mustang and several police cars too to improve on its overall fuel economy and emissions ratings as a group. The updates to the factory will add close to 700 new jobs.
Incidentally, Donald Trump in his election campaign speeches has categorically mentioned how Ford’s new factory in Mexico was an “absolute disgrace” and that he would slap hefty taxes on to any Ford vehicles that will be made in Mexico. In one of his campaign speeches, Trump said "They’ll say,‘Mr. President we’ve decided to move the plant back to the United States — we’re not going to build it in Mexico.’ That’s it. They have no choice”. Looks like Donald Trump did accurately predict this one then.
Stay updated with automotive news and reviews right at your fingertips through carandbike.com's Google News
Related Articles
Ford To Resume Vehicle Manufacturing In India; To Export Cars Built In Chennai
Ford Mulls India Return, Holds Talks With Tamil Nadu CM
Ford Signs Reigning Champion Carlos Sainz Sr To Lead Its Dakar Rally Program In 2025
Ford Patents Mobile Gaming Simulators With Built-In Projectors in EV
Ford EcoSport With EcoBoost Engine Recalled In The US For Oil Pressure Issues
Latest News
Upcoming Triumph Thruxton 400 Spied Ahead Of Debut
Triumph Speed Twin 900 Launched At Rs 8.89 Lakh
MG Cyberster India Specifications Revealed Ahead Of January 2025 Launch
Honda and Nissan Sign MOU To Explore Merger; Mitsubishi Likely To Join
2025 Honda SP125 Launched In India At Rs 91,771
Sea To Summit With Hyundai Exter: Varkala To Anamudi on a Single Tank of Fuel
Limited-Run Ola S1 Pro Sona Edition Revealed; Sports 24K Gold-Plated Components
Lexus LF-ZC Concept To Be Showcased At 2025 Bharat Mobility Expo
2025 Honda Activa 125 Launched At Rs 94,422; Gets New 4.2-inch TFT Display
Maruti Suzuki Fronx Off-Road Concept Revealed; Gets Yokohama Geolandar Tyres, Roof-Mounted Aux Lights
