Ford will shift production of its next-generation compact cars from Michigan to Mexico in the next couple of years.
The news came Thursday in a letter from the United Auto Workers as it begins negotiations over the Wayne, Mich. plant that currently builds the Focus sedan and hatchback and the C-Max hybrids for North America, according to the Wall Street Journal.
A Ford spokesperson told Carscoops on Thursday:
We will move production of the next-generation Ford Focus and C-MAX, which currently are built at Michigan Assembly Plant, beginning in 2018. We actively are pursuing future vehicle alternatives to produce at Michigan Assembly and will discuss this issue with UAW leadership as part of the upcoming negotiations.
Ford has two assembly plants in Mexico, currently building the Fiesta at a Cuautitlán plant and the Fusion and Lincoln MKZ in Hermosillo. The next-generation Fiesta is tipped to be sourced from Thailand, meaning the Focus and C-Max could move to Cuautitlán.
In a statement, the UAW says it’s confident Ford will find a use for the Wayne plant when Focus and C-Max production ends in 2017. In April, the company announced a $2.5-billion investment and a new Mexican plant to build engines and transmissions, much to the anger of the UAW.
Ford’s compact car sales have been sagging in recent months, with the Wayne plant closed when President Obama visited in January to reduce vehicle inventories. The move to Mexico is likely a way to keep profits stable as more Americans fall for SUVs and crossovers instead of cars.
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