Ford to move all US small vehicle production to Mexico

14 September 2016 21:50 Source:ICIS News

Ford Motor is moving all small-car production to Mexico. Above, workers assemble a 2012 Ford Focus at Ford Motor Company
Production of the Focus, Fusion and all other smaller models will be moved from US plants within the next two to three years, CEO Mark Fields says. Above, workers assemble a 2012 Focus at a plant in Wayne, Michigan. (ImageBroker/REX/Shutterstock)

Clarification: The headline for this article has been clarified to specify that Ford intends to move all of its small-vehicle production in the US to plants in Mexico.

MEDELLIN, Colombia (ICIS)--Ford Motor CEO Mark Fields said on Wednesday that all of the company's small-car production will be leaving US plants and heading to lower-cost Mexico.

"We will have migrated all of our small-car production to Mexico and out of the United States" over the next two to three years, Fields said during an investor conference hosted by the automaker.

Earlier this year, Ford said it would invest $1.6bn in Mexico for small-car production to start in 2018.

Mexico has been very successful at using cheaper labour and trade deals to win billions of dollars in foreign investment from the likes of Nissan Motor and Kia Motors Mexico.

Mexican domestic automobile production surged by 13.9% in August year on year, the Mexican Automakers Association (AMIA) and Mexican Auto Distributors Association (AMDA) said earlier this month.

In a similar move, Fiat Chrysler Automobiles said in April that it will realign North American plants to emphasise truck and Jeep production over car output. The changes are expected to be completed by early 2018.

Both companies are making the moves because US consumers have turned away from traditional sedans and hatchbacks to SUVs and pickup trucks.

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INSET IMAGE: Ford Motor Company logo on the bonnet of a Focus. (High Level/REX/Shutterstock)

By Leela Landress de Perez