Ford Will Build Electric Cars in Mexico, Shifting Its Plan
- 6 years ago
Ford Will Build Electric Cars in Mexico, Shifting Its Plan
Sherif Marakby, Ford’s vice president for autonomous vehicles and electrification, said Thursday
that the company had altered its plans for the Michigan plant — in Flat Rock, 25 miles southwest of Detroit — because it now expected the market for self-driving cars for taxis and delivery fleets to grow rapidly after it rolls out its first model in 2021.
Almost a year ago, after heavy criticism from President-elect Donald J. Trump, Ford Motor Company canceled plans to build a $1.6 billion car plant in Mexico and announced
that it would instead equip a Michigan factory to make electric and hybrid models.
Producing electric cars in Mexico will enable Ford to take advantage of lower labor costs
and improve the “fitness” of that business, Mr. Marakby said.
Few industries are more heavily affected by the accord than the auto sector, which has rushed to build plants in Mexico over the last several years to take advantage of lower labor costs
and that country’s extensive network of trade agreements.
“We are very optimistic that we will grow the volume in the autonomous business.”
Ford now plans to invest $900 million in the Flat Rock location, up from $700 million.
Automakers have been concerned that changes to the trade accord, such as rules requiring the use of more American-made
parts, could raise the cost of vehicles produced in Mexican plants and hurt the value of the plants they have built.
Late last month, Vice President Mike Pence met with top executives from Ford, General Motors
and Fiat Chrysler to discuss trade and the renegotiation effort.
Sherif Marakby, Ford’s vice president for autonomous vehicles and electrification, said Thursday
that the company had altered its plans for the Michigan plant — in Flat Rock, 25 miles southwest of Detroit — because it now expected the market for self-driving cars for taxis and delivery fleets to grow rapidly after it rolls out its first model in 2021.
Almost a year ago, after heavy criticism from President-elect Donald J. Trump, Ford Motor Company canceled plans to build a $1.6 billion car plant in Mexico and announced
that it would instead equip a Michigan factory to make electric and hybrid models.
Producing electric cars in Mexico will enable Ford to take advantage of lower labor costs
and improve the “fitness” of that business, Mr. Marakby said.
Few industries are more heavily affected by the accord than the auto sector, which has rushed to build plants in Mexico over the last several years to take advantage of lower labor costs
and that country’s extensive network of trade agreements.
“We are very optimistic that we will grow the volume in the autonomous business.”
Ford now plans to invest $900 million in the Flat Rock location, up from $700 million.
Automakers have been concerned that changes to the trade accord, such as rules requiring the use of more American-made
parts, could raise the cost of vehicles produced in Mexican plants and hurt the value of the plants they have built.
Late last month, Vice President Mike Pence met with top executives from Ford, General Motors
and Fiat Chrysler to discuss trade and the renegotiation effort.