Mexico says existing auto jobs safe after Ford announcement

  • Mexico says existing auto jobs safe after Ford announcement

Mexico says existing auto jobs safe after Ford announcement

According to the auto maker, the move to shift Focus production away from North America would save it about $A1.25 billion in investment costs, "improving the financial health of its Focus business and further improving manufacturing scale in China - all helping create a more operationally fit company", it said in a statement.

Now Ford says it has an even cheaper solution: It will make Focuses for the United States market in China, where it already produces the model for Chinese drivers.

While other US companies such as Apple have been manufacturing products in China, Ford's decision to source the Focus from the country in East Asia is likely to draw more attention than the others.

He adds that moving production to China saves Ford $1 billion in investments - $500 million more than earlier plans to cancel the new Mexican plant and expand an existing facility in Hermosillo, Mexico.

Currently, Ford makes its Focus cars in Michigan, Germany and in China.

Joe Hinrichs, Ford's head of global operations, cited lower costs as the reason to outsource production to China.

But will Americans buy cars made in China? Making the sedan in neighboring Mexico would be more convenient for Ford, enabling the company to avoid the high costs of shipping the cars from Asia. "It could usher in an era where we'll start seeing even more products imported from China in the next few years". Ford wants to make room for larger, more profitable vehicles at the MI plant, which employs 3,600.

Ford also said Tuesday that it will invest $900 million in its Kentucky truck plant to build the new versions of the Ford Expedition and Lincoln Navigator, there.

The Trump administration's reaction to Ford's latest move seemed reserved, as on Tuesday Commerce Secretary Wilbur Ross said, "The Ford decision shows how flexible multinational companies are in terms of geography". News of that spending will preserve 1,000 jobs and could help insulate Hackett, 62, from the attacks Trump levied against the automaker during the tenure of ex-CEO Fields. Workers who build the Focus at the Michigan Assembly Plant in Wayne will be needed to make two new models, the Ranger pickup truck and the Bronco SUV.

Plans for production of the 2019 Focus - which will be larger and have some significant updates - have bounced around over the last few months as Ford tries to squeeze some profits from the ailing small auto segment.

"Building in China [for the US market] will become more common", said Michelle Krebs, senior analyst for AutoTrader. "This just made sense".

Shares outstanding are recorded as 3989.08 billion and total shares floated are 3829.87 billion.

"Ford's Big Bet: Americans, and Trump, Are Ready For Chinese Cars", was the headline for Bloomberg. General Motors started exporting Buicks and Cadillacs from the Middle Kingdom past year.

The U.S. president has so far remained quiet about Ford's decision. Meanwhile, Swedish luxury vehicle manufacturer Volvo is now owned by a Chinese company.