Ford makes a U-turn.
The automobile manufacturer , which announced in September that it was going to build a $1.6 billion plant in Mexico, cancelled plans and instead will invest $700 million in its Flat Rock, Mich., assembly plant.
Ford on Tuesday announced that it was cancelling plans for construction of a new small-car product plant in San Luis Potosi State, Mexico. The plant was scheduled to open in 2020. It would have employed 2,800 workers.
Ford’s decision elated many, including an official of the United Autoworkers, the union that represents Ford employees.
“I’m thrilled that we have been able to secure additional UAW Ford jobs for American workers, ” Jimmy Settles, UAW vice president, National Ford Department, said in a statement.
Mark Fields, Ford CEO, said market forces dictated that Ford not build a plant in San Luis Potosi.
When Ford made its announcement about constructing a new plant in Mexico, Donald Trump, then the Republican nominee for president, said we shouldn’t let Ford carry out their plans [build a plant in Mexico].
Hours before Ford announced that it would not build a plant in San Luis Potosi, Trump, now president-elect, threatened the company with high tariffs on cars built in Mexico and imported to the U. S. Michigan’s Flat Rock plant employs 3,200 workers.
The new deal means Ford will add 700 new jobs and workers will produce high-tech and electrified and autonomous vehicles or self-driving cars.
Ford said, however, that it will build the next generation of the Ford Focus in an existing plant in Hermosillo, Mexico.