Ford Moving All U.S. Small Car Works to Mexico

September 16, 2016

Wednesday, Ford CEO Mark Fields confirmed the company's plans to move all small car production to its new facility in San Luis Potosi, Mexico. The company expects to produce 350,000 vehicles a year.

Ford announced in April its plans to invest $1.6 billion in a new small car plant in San Luis Potosi, Mexico as part of a $2.5 billion plan to add 6,600 jobs in the next few years.

Based on previous reports, Ford had earlier confirmed plans to move the Focus and C-Max vehicle production outside the country. With this new announcement, Focus and C-Max will join the Fiesta in Mexico. According to the Wall Street Journal, Ford is planning to build a new hybrid vehicle similar to Toyota's Prius in Mexico.

Presidential candidate Trump called the decision “an absolute disgrace” in a statement on Tuesday. In the past, Mr. Trump has threatened to slap a 35% tax on cars, trucks and auto parts exported to the U.S. from Mexico as a deterrent.

UAW President Dennis Williams on Tuesday called Ford’s decision to expand in Mexico “a disappointment and very troubling.”

The automaker says the production shift will not result in any job losses. The shift is expected to be complete before the start of the 2018 model year.

Ford has had operations in Mexico for 91 years.