According to the plan announced by the company on Tuesday, production of the Focus in Michigan would end next year with imports of the vehicle from China starting in 2019, the Wall Street Journal reported.
The new Focus originally was to be built in the central Mexican state of San Luis Potosi, but the company canceled construction of a $1.6 billion plant there in January. At the same time, then-president-elect Trump had taken to Twitter to criticize General Motors for importing cars from Mexico.
Ford says the move from Mexico to China will save the company $1 billion in investment costs and will make it “a more operationally fit company,” according to NPR. It also promises that “no U.S. hourly employees will be out of a job” because of the move to China, reported NPR.
Ford is coming off a record year in China, with Ford Focus sales up 110 percent, according to the company’s highlights. When Ford it opened its sixth assembly plant in China back in 2015, the company said it could build 1.4 million vehicles a year in the country, said NPR.
According to Reuters, the the decision to move from Mexico to China “signals shift in strategy at Ford, which is responding to dwindling U.S. consumer demand for small cars in favor of more expensive and more profitable trucks and SUVs.
Cars accounted for more than 50 percent of U.S. auto sales as recently as 2012, but have fallen to just 37 percent of sales this year.”
Ford claims the move is purely financial and will not impact U.S. employment, as the Michigan plant will instead build SUVs and midsize trucks rather than small cars.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now