Ford shifting all U.S. small-car production to Mexico

Greg Gardner and Brent Snavely, Detroit Free Press

CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive

Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn, even though its plans to invest in Mexico have become a lightning rod for controversy in this year's presidential election.

"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.

Ford isn't the first automaker move small car production out of the U.S. as Mexico has become a mecca for new automotive industry investment and has surpassed Canada in annual automotive production.

Still, the news sparked a fresh round of criticism from Republican Presidential candidate Donald Trump, who was in Flint on Wednesday.

http://www.freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/

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It isn't clear what impact this move will have on the local employment and economy. The article does state that there is an 'expectation' the plant may make a different type of vehicle. However if the goal is to lower production costs, this may just be an expectation.  Ford isn't the only automobile manufacturer to move production to Mexico, as the article mentioned others have been doing the same thing for years. Reducing production costs won't happen as long as the unions wield the power in D.C.

Quote from: tac on September 14, 2016, 04:24:19 PM
Ford shifting all U.S. small-car production to Mexico

Greg Gardner and Brent Snavely, Detroit Free Press

CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive

Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn, even though its plans to invest in Mexico have become a lightning rod for controversy in this year's presidential election.

"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.

Ford isn't the first automaker move small car production out of the U.S. as Mexico has become a mecca for new automotive industry investment and has surpassed Canada in annual automotive production.

Still, the news sparked a fresh round of criticism from Republican Presidential candidate Donald Trump, who was in Flint on Wednesday.

http://www.freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/

---

It isn't clear what impact this move will have on the local employment and economy. The article does state that there is an 'expectation' the plant may make a different type of vehicle. However if the goal is to lower production costs, this may just be an expectation.  Ford isn't the only automobile manufacturer to move production to Mexico, as the article mentioned others have been doing the same thing for years. Reducing production costs won't happen as long as the unions wield the power in D.C.

Absolutely correct. Like it or not we live in a global economy and we no longer can pay wages that make out products non competitive.