Ford set to invest almost $1 billion into Truck Plant
- Author: Carolyn Briggs Jun 23, 2017,
Jun 23, 2017, 7:44
President Trump, who previously gloated about keeping Ford jobs in the US, has yet to respond to the move.
And while it wouldn't be fair to blame the White House for the auto maker's latest move, it does create a political headache for the president who was a little too eager to boast about Ford scrapping its plans south of the border.
"We're losing our jobs to Mexico", Trump argued, adding, "And I have to tell you I've turned it around, already I've turned it around, you see that". Trump wasted little time celebrating on Twitter.
The new Focus production initiative saves $1 billion in investment costs versus the original plan - $500 million on top of the $500 million savings announced earlier this year by cancelling an all-new manufacturing facility in San Luis Potosi, Mexico, and moving Focus production to the Hermosillo, Mexico, plant.
Bloomberg reported that the move will make the Focus the biggest automotive export ever from China to the United States.
Now Ford, the nation's second-largest automaker, after General Motors, is centralizing much of its small-car production in China, where it has available capacity.
That's good news for now President Trump, right? In announcing its China plans, the company said it would save $1bn in costs it would have incurred to retool a Mexico plant to build the Focus and to build the new factory there.
While Ford was a relative latecomer compared to GM, China represents a growing market for the American vehicle company.
"Finding a more cost-effective way to deliver the next Focus programme in North America is a better plan, allowing us to redeploy the money we save into areas of growth for the company - especially sport utilities, commercial vehicles, performance vehicles as well as mobility, autonomous vehicles and electrified vehicles", explained Joe Hinrichs, Ford executive vice president and president of Global Operations in a statement.
One would normally expect Trump to come out swinging at Ford's apparent change of heart regarding their previous "vote of confidence" in his presidency.