Ford Motor Cancels $1.6 Billion Mexican Auto Plant

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On Tuesday, the Ford Motor Company announced that they were no longer going to build an auto plant in Mexico that would cost $1.6 billion. Instead, they are going to invest about $700 million towards maintaining its operations in Michigan. As a result, Ford said this would save 700 jobs in Michigan.

Ford Motor CEO Mark Fields made this surprising announcement just a few short hours after General Motors was criticized by President-elect Donald Trump for importing their vehicles from Mexico through the southern border. Trump singled out the Chevrolet Cruz vehicles as the ones they import from there. Fields did not admit that their decision to keep jobs in Michigan had anything to do with Trump’s statements about General Motors or previous criticisms that Trump made about Ford moving their plant to Mexico.

In an interview with CNBC, Fields claimed that there was a “market decline in small vehicles,” which prompted Ford to alter its original plan of building a plant in Mexico. Now, they are going to keep their plant in Michigan so that they can remain “strong and vibrant” in the United States. Trump, of course, was very happy that Ford is now staying in the U.S. and he didn’t hesitate in taking credit for it either.

As for General Motors, they responded to Trump’s criticisms by claiming that all their Chevrolet Cruze vehicles are manufactured in the United States. They said only a small percentage of their “hatchback” models actually get imported from Mexico.

Trump has certainly gotten a lot accomplished during the transitional phase of his presidency. He has already gotten credit for saving thousands of jobs at the Carrier plant in Indianapolis. Now with hundreds of more jobs saved in Michigan, his voters are likely going to believe that he’ll keep his word to them.

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