Ford moving electric SUV production from MI to Mexico


According to the latest reports, however, that SUV will now be built at Ford's Cuautitlan Stamping and Assembly Plant in Mexico.

The news was celebrated by the incoming Trump administration, which claimed that it had convinced USA automakers to bring jobs home.

Ford (NYSE:F) plans to produce a future electric auto in Mexico rather than in the US, reversing its January announcement that the Flat Rock, Mich., assembly plant would serve as its main electric vehicle production site, WSJ reports.

Mark Fields, Ford's CEO at the time, referred to the plans for the MI plant as a "vote of confidence" in the Trump administration.

Ford Motor Company has confirmed plans to move production of its upcoming battery-electric crossover from MI to Mexico.

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In fact it now expects to have 850 jobs there, rather than 700.

The company, along with every other automaker, is making a major push into self-driving vehicle technology. Production of the electric SUV is expected to start in 2020, while the autonomous vehicle will start rolling off the production line in 2021.

"Next year will be an important time for us as we begin to test both our self-driving technology and business model in a variety of pilot programs in the first city in which we plan to operate an autonomous vehicle business", wrote Jim Farley, Ford's executive vice president and president of global markets, in a recent blog post.

"We have excess capacity at that plant", said Ford spokeswoman Kelli Felker. But it also entails the risk that the Trump administration could put steep taxes on new cars built in Mexico as it seeks to renegotiate the NAFTA trade deal. Hall says this will also create hundreds of additional jobs, according to the Detroit Free Press. It won't shut down any USA production. It also risks raising the ire of President Donald Trump, who had been sharply critical of an earlier plan by Ford to build a small vehicle factory in Mexico that the company ultimately canceled. That vehicle will now be made at an existing Mexico facility. The automakers met with Vice President Mike Pence recently to express concerns about moving away from NAFTA.