Remember When Ford ‘Cancelled’ That Plant In Mexico? Well, They’ve Just Moved It To China

Zero Hedge – by Tyler Durden

Back in January, Trump took a very public victory lap when Ford decided to scrap plans to build a $1.6 billion manufacturing facility in Mexico and invest in its Michigan facilities instead (we discussed it here: Trump Takes Victory Lap After Ford Cancels $1.6 Billion Mexican Expansion Plan As “Vote Of Confidence” In President-Elect).

As Ford announced at the time, the decision was sold to the public and the United Auto Workers as an opportunity to permanently shift production capacity, that would have otherwise been built in Mexico, back to Wayne, Michigan.  

To support the new era of vehicles, Ford is adding 700 direct new U.S. jobs and investing $700 million during the next four years, creating the new Manufacturing Innovation Center at its Flat Rock Assembly Plant.

Ford today announced it is cancelling plans for the new plant in San Luis Potosi, Mexico. It also announced that, to improve company profitability and ensure the financial as well as commercial success of this vehicle, the next-generation Focus will be built at an existing plant in Hermosillo, Mexico. This will make way for two new iconic products at Michigan Assembly Plant in Wayne, Michigan, where Focus is manufactured today – safeguarding approximately 3,500 U.S. jobs.

This incremental investment in Flat Rock Assembly Plant comes from $1.6 billion the company previously had planned to invest in a new plant in Mexico.

“I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers,” said Jimmy Settles, UAW vice president, National Ford Department. “The men and women of Flat Rock Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success with a new generation of high-tech vehicles.”

But, as Ford points out today, Trump’s victory lap may have been premature as one of the first strategic actions taken by the company’s new CEO, Jim Hackett, will be to relocate the company’s ‘Focus’ production to China rather than Mexico.

Exciting new Ford Focus on the way for North American customers beginning in 2019 with more technology, more space and a number of new Focus models. Next-generation Focus for North America will be globally sourced primarily from China – rather than Hermosillo, Mexico – with production starting in the second half of 2019. Current model production ends in mid-2018

This manufacturing plan allows the company to further grow its leadership as an exporter and deliver world-class Focus to North American customers in a way that makes business sense – with no U.S. employees out of a job

Ford is saving $1 billion in investment costs versus its original Focus production plan, improving the financial health of its Focus business and further improving manufacturing scale in China – all helping create a more operationally fit company

And while Ford has suggested that the move will not cost a single UAW worker his/her job here in the United States, we have our doubts as manufacturing capacity, much like cash, is somewhat fungible…so unless Ford plans to massively grow market share and/or permanently increase overall demand, shifting production to China must mean that production will decline somewhere else…we suspect that ‘somewhere else’ will be somewhere in the U.S.

9 thoughts on “Remember When Ford ‘Cancelled’ That Plant In Mexico? Well, They’ve Just Moved It To China

  1. “This manufacturing plan allows the company to further grow its leadership as an exporter and deliver world-class Focus to North American customers in a way that makes business sense…”

    Don’t buy Ford. Let the company – that now the people of the country that gave that company its start, helped to build it to its massive size, does not like those willing to be a traitor – leave and with the knowledge that they may no longer sell any type of their vehicles that are not completely made at every stage here in the USA, here in our nation. They will still be allowed to sell any product that is 100% American made here.

    Because the one thing everyone forgets is that most of those corporations still SELL most of their product here. China is better for their operating costs, good for them. but now they must start to consider IF it is the people of China that is buying their product, or those people of any other third world nation. Free Trade, CAFCA, NAFCA, etc were all created to bring down the USA, so lets no longer let the government and its (mostly) unlawful agencies decide for us anymore.

    THAT is what we should do to any corporation that got its start here, and was built up here, and decided to aid in the destruction of our nation by leaving to “cut costs”. No problem, how low can they sell their product for, because, usually, the highest prices they can get come from here.

    Any corporation, etc that any of us believes is behaving non American, we should list them, and NOT buy anything of theirs, or anything that is created with any of their products. WE CAN CHANGE OUR NATION, if we decide to.

    We do NOT need the government to make legislation about this, we must just take responsibility and do it ourselves. Talk everyone or almost everyone – those still with half a brain left, into NOT buying anything that corporation sells until, and if, that corporation comes back into the USA with ALL parts of its manufacturing done here. Want American buyers, build it here, build it completely here.

    Stand up as individuals people, and make a decision on this, and then we must fight to carry it out with NO governmental interference. BTW, we can do this with any corporation any product – examples Monsanto, don’t buy, don’t use, don’t buy any from any farm/ranch/etc that used its product. Ford – same. Military being sent unlawfully to invade another foreign nation, talk to our sons/daughters/husbands/wives/friends that serve and remind them of their Oath, that it is to the document, NOT to people or governmental positions. That if they are in to DEFEND our nation, they do not do so by “just obeying UNLAWFUL orders”.

    We can stop anything we want. WE can dump both parties that we are not supposed to have. WE can dump the people who serve within our government. But first, our first steps should be to stop Ford, etc. Then to dump TSA by NOT FLYING anywhere for any reason. Etc.

    Any other ideas all?

    Bye, and don’t let the door hit you on the azz on your way OUT.

    Buy American, Build American, KEEP American values. Screw them!

  2. Trump has shown America what kind of a traitor he really is, more manufacturing has left the United States than ever before. This ass hole is becoming the lying traitor president of all time.

    1. They build Jap cars right here in America, those Chinese pricks can,t even build a decent set of chop sticks, but I have to acquiesce, they build a mean slavery built ipad.

    2. That’s because the Japs left the ‘planned obsolescence’ out of the equation.

      My Honda in L. A. lasted 10 yrs. with no major problems, other than having the tranny rebuilt. That was strictly my doing, however, as the only way to NOT get hit in L.A. is to drive aggressively as hell.

      1. My 98 Nissan Frontier 4banger 2wd is still kicking ass at 300k, I buy parts online, replace them before they fully wear out and do all the work myself, I do not trust vehicles made after the millennium.

        1. 2002 Honda Accord 2 door coupe, 6 cyl. V-Tec. Wicked fast… for an automatic.

          Never did the work myself… WAY more parts (and WAY less room) in those engine compartments than when I used to work on them back in high school. Fortunately, however, I had a top-notch mechanic who was also HONEST (AND very reasonably priced)… a true rarity these days.

Join the Conversation

Your email address will not be published.