Ford will now build electric cars in Mexico

07 December, 2017, 21:21 | Author: Regina Silva

At the time the company said it was planning to start production of the electric crossover with 300 miles of range in summer 2020 at Flat Rock, while a new autonomous model would commence production in 2021.

All the major automakers make some of their cars for the US market in Mexico, and all depend on Mexican parts suppliers for cars built at USA plants.

The company says it will still go ahead with plans to invest and create new jobs at Flat Rock, but that it will build self-driving cars there instead, rather than electric cars. Ford has since confirmed it has adjusted production plans to move the new crossover to Mexico. "It's not like they're not putting money into the U.S".

Ford originally earmarked US$700 million for the EV in its MI plant, which would have created about 700 new jobs, but it now plans to invest even more for its autonomous development there. Ford has been viewed by Wall Street as playing catch-up to rivals such as Tesla and General Motors, which already sells the battery-powered Chevy Bolt and plans to introduce robot taxis in 2019.

The move comes as Ford and other automakers place increasingly large bets on electrification and self-driving technology.

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Ford will build its next generation all-electric auto in Mexico, rather than at the plant in MI where it promised to build it.

The Flat Rock, Mich. factory had been designated for production of an unidentified electric auto.

"Automakers have been out of the line of fire of late with so many other issues brewing in D.C.", Krebs said, adding that the impact of the president's planned changes to the North American Free Trade Agreement represents an "unknown" for Ford as it shifts the electric SUV to Mexico.

That's one reason it tapped Jim Hackett, who previously led Ford's self-driving vehicle effort, as CEO when Fields was forced out earlier this year. So now we're back to making cars in Mexico? Ford's autonomous business will "serve leading companies, such as Lyft, in the movement of people and goods".

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