FoMoCo (NYSE:F) ‘Cans’ $1.6-B Assembly Plant in Mexico
$F, $GM, $TWTR
Ford Motor Co. (NYSE:F) has ‘canned’ plans to build a $1.6-M plant in Mexico.
The next-generation Focus compact car will be built at an existing factory in Hermosillo, Mexico, and Ford will cancel plans to build a plant in San Luis Potosi, CEO Mark Fields said Tuesday.
Ford is the US’ 2nd-largest automaker, and will build 2 products at a factory in Wayne, Michigan, where it assembles the Focus now, protecting about 3,500 jobs.
“One of the factors we’re looking at is the more positive US business environment that we foresee under President-elect Trump and the pro-growth policies that he’s been outlining,” CEO Fields told reporters at Ford’s factory in Flat Rock, Michigan, where the company is investing $700-M and adding 700 jobs. “This is a vote of confidence around that.”
Ford’s Executive Chairman Bill Ford called President Elect Donald Trump Monday morning to inform him of the company’s plans to cancel construction of the new plant in Mexico.
Ford’s Mexico Message: “It is the wrong time to build new plants in Mexico,” Erik Gordon, a professor at the University of Michigan’s Ross School of Business, said in an e-Mail. Ford will save money, “American jobs, and will avoid the risk of a border tax and a smack in the face from the new president.”
Ford said it will add production by Y 2020 of a fully electric sport utility vehicle (EV) with at least 300 miles of range, and an autonomous hybrid vehicle for commercial ride hailing or sharing by Y 2021 at the Flat Rock factory. The plant will also build a hybrid version of the Mustang sports car in Y 2020.
Ford was a target of President Elect Trump during his campaign for plans to move small car production from the US to Mexico. The Dearborn, Michigan-based company changed course. Mr. Fields said Donald Trump influenced the automaker’s decision to continue building the Lincoln MKC in a Louisville, Kentucky, factory where it also produces the Ford Escape SUV.
Early Monday, Donald Trump warned General Motors Co. (NYSE:GM) about it’s building a version of its fading compact car in Mexico, rekindling a dust up with the auto industry and earning a terse response from the company challenging his assertions.
Donald Trump said in a Twitter (NYSE:TWTR) post that the largest US automaker, which manufactures a Chevrolet Cruze hatchback model in San Luis Potosi, should build the car at home or face a hefty tariff.
|NYSE:F||12.56||3 January 2017||0.43||12.2||12.6||12.13||32,257,70|
|HeffX-LTN Analysis for F:||Overall||Short||Intermediate||Long|
|Bullish (0.37)||Bullish (0.28)||Very Bullish (0.50)||Bullish (0.33)|
Latest posts by Paul Ebeling (see all)
- The Street’s Key Stock Analysts Research Reports - September 19, 2019
- Asia: Gold, Crude Oil, Stocks, Commodities and Currency Pairs - September 19, 2019
- Gold Price: Bulls Vs Bears - September 19, 2019