Ford Cancels Mexican Plant

2017 Ford Focus (Credit: Ford)

You could call it the “Trump Effect,” but Ford’s not going to build a $1.6 billion plant in Mexico. Trump railed on Ford’s plan throughout his campaign, with his followers joining in. The accusation is that the jobs created south of the border should instead be generated in the United States.

Instead of expanding its Mexican operations, the company is putting $700 million into the Flat Rock plant in Michigan. That’s a fraction of what it was going to spend in Mexico, but the company isn’t saying what it’ll do with the difference.

According to Ford, the Flat Rock expansion will create 700 new jobs.

Thanks to this latest development, Ford will shift Focus production to an existing plant in Hermosillo, instead of the new one. Mexican officials aren’t happy, while politicans in the United States are celebrating.

On CNBC, Ford CEO Mark Fields said the decision mainly was fueled by a lack of demand for the Focus. He did add it was a “vote in confidence” in the policies Trump has promised, with positive impacts for the country’s manufacturing sector.