Just weeks before President-elect Donald Trump takes up residence in the White House, Ford has confirmed that it will scrap a proposed $1.6 billion small car factory in Mexico, a project heavily criticized by Trump.
Instead, the American automaker will invest $700 million into a Michigan factory set to build a host of electrified vehicles. Its plan to shift small car production to Mexico hasn’t been scrapped though; those vehicles will just be built at an existing Mexican plant.
Ford’s announcement came just hours after Donald Trump openly threatened to impose tariffs on Chevrolet Cruzes imported from Mexico in the U.S. by General Motors and ends months of disagreements between the Blue Oval and Trump.
Speaking at an event announcing its new Mexican and electric vehicle plans, Ford chief executive Mark Fields said: “We are encouraged by the pro-growth plans that President-elect Trump and the new Congress indicate they will pursue.”
According to the company, its decision to scrap the new Mexican facility was made independently and not influenced by the new President. Officials from the brand say that the revised plans are tied to market conditions, which have shrunk small car sales.
Nevertheless, Ford is optimistic about the future under Trump. According to Fields, “we have a president-elect who has said very clearly that one of his first priorities is to grow the economy . That should be music to our ears.”
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!— Donald J. Trump (@realDonaldTrump) January 3, 2017
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