Ford has canceled its plans to open a new plant across the southern US border in Mexico and will instead invest in Michigan, creating 700 new jobs for US workers, CNN reported. Ford CEO Mark Fields says the move is a “vote of confidence” in the pro-business environment of the new administration.
The new Ford plant will cost $700 million to build and will be located in Flat Rock, Michigan. It will primarily produce electric and self-driving cars. Ford believes these will outnumber gas-powered cars within 15 years. Ford has a number of new electric and self-driving vehicles in the works to be released in the next five years, including a hybrid version of the Mustang.
Canceling the Mexico plant is a big change for Ford, as they were ready to invest $1.6 billion in Mexico and move production of the Ford Focus there. Now, they will move production of the Focus to a plant in Mexico that already exists and instead invest the money in expanding on US soil. Ford is still moving the Focus to Mexico in order to cut costs, since the Focus and other small cars are losing popularity in favor of larger vehicles like SUVs and trucks.
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