Ford Cancelled $1.6B Plant In Mexico To Build Michigan Plant For 700 Jobs Instead

By Conan K. | Jan 06, 2017 08:37 PM EST

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Ford announced that it would be canceling its proposed $1.6 billion plant in Mexico allocated for the production of the Ford Focus. Ford CEO Mark Fields stated that the cancellation would be put into a $700 million investment that would lead to 700 new jobs in Michigan instead.

Ford’s cancellation was stirred by President-elect Donald Trump’s criticism of its unveiled plan to build a factory in San Luis Potosi, Mexico. As reported by CNN, Trump threatened the automotive company that he would file a 35% tariff on cars made in Mexico that it will sell in the U.S.

Besides the criticism, Ford was also moved by Trump’s General Motors tweet, as reported by Daily Mail. The tweet mentioned that Trump would fine the General Motors company of a “big border tax“ if it continued to make a version of its Chevy Cruze in Mexico. This tweet was averred as Trump’s latest strategy on promoting more American jobs in the country.

Fields stated that the sudden change of plans was not a deal with Trump but instead is an inspiration of Trump’s “pro-growth” and tax and regulatory reform. He added that it was the one factor that gave them the confidence to enact the cancellation of Mexico plant and create the American jobs instead.

"Our view is that we see a more positive U.S. manufacturing business environment under President-elect Trump and the pro-growth policies and proposals that he's talking about, so this is a vote of confidence for President-elect Trump and some of the policies that they may be pursuing," Fields said on Fortune.

Donald Trump expressed his gratitude through Twitter for the automotive company’s support in protecting American jobs. "Thank you to Ford for scrapping a new plant in Mexico and creating 700 new jobs in the U.S. This is just the beginning - much more to follow," he said.

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