Ford cancels Mexico plant, to invest $700M in Michigan


Ford Motor Co. is cancelling plans to build a new $1.6 billion plant in Mexico and will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford CEO Mark Fields made the announcement Tuesday as a “vote of confidence” in the pro-business environment President-elect Donald Trump is creating. Fields said the company did not make a special deal with Trump.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving vehicles. Two of the vehicles built at Flat Rock will include all-new fully electric SUVs with a range of at least 300 miles.

Fields said Ford will also make gas-electric hybrid version of the F-150 pickup, Mustang and Transit by 2020.

The investment will create 700 new U.S. jobs.

Ford, however, still plans to shift production of the Focus small car to Mexico and will make the car at an existing plant. President-elect Donald Trump has been pressuring Ford to keep production of the Focus in the U.S.

The following is a press release from the governor's office: Michigan’s national leadership in advanced manufacturing continued today with the announcement that Ford Motor Co. will create a Manufacturing Innovation Center at its Flat Rock Assembly Plant.

The newly expanded plant will manufacture electric and autonomous vehicles. The expansion will create 700 new jobs at Flat Rock in addition to the company's 47,000 jobs already in Michigan. The project is expected to generate more than $700 million in total investment and be completed in 2020.

“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,” Gov. Rick Snyder said. “In the next decade, Michigan will lead the world in reimagining transportation with the acceleration of next generation advanced technologies. 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.”

Attracting new investment in the state’s advanced automotive and mobility sector is a top priority for Gov. Snyder and the Michigan Economic Development Corporation. Michigan ranks first in new automotive-related jobs since 2009 with an increase of more than 200,000 through March 2016. Michigan also is home to 63 of the top 100 North American auto suppliers and home to 75 percent of North American automotive research and development.

“This expanded facility means more well-paying jobs for Michigan residents and underscores the strength of the talent in the state’s automotive sector,” said Steve Arwood, CEO of the Michigan Economic Development Corporation, which administers incentives and programs on behalf of the Michigan Strategic Fund. The project will request formal consideration and approval from the Michigan Strategic Fund later this year.

“The decision by Ford to build these products here is another capstone on our work to lead in automotive mobility and will have a tremendous positive affect on our world-leading supply base,” Arwood said.Copyright 2017 WNEM (Meredith Corporation). All rights reserved.


Digital Content Producer

Recommended for you