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Ford Cancels Construction Of $1.6B Mexican Plant, Will Invest In US Jobs

Ford CEO Mark Fields said that, despite Trump's persistent criticism, the automaker's decision was "done independently" of the president-elect.

Flat Rock Assembly employees clap as Ford President and CEO Mark Fields addresses the auto plant, Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)
Flat Rock Assembly employees clap as Ford President and CEO Mark Fields addresses the auto plant, Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)

On Tuesday, Ford Motor Co. announced a surprise decision to cancel previously laid plans to construct a $1.6 billion small cars factory in Mexico. Instead, the automaker said it will produce its small cars in an existing plant, while also investing $700 million in a Michigan facility that will build electric vehicles.

According to the Associated Press, a chunk of Ford's $700 million investment will go toward hiring around 700 new workers. 

Announced in early 2016, Ford said it would move production of its Ford Focus from Michigan to the would-be plant in San Luis Potosi, Mexico.

Ford President and CEO Mark Fields addresses the Flat Rock Assembly Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)Ford President and CEO Mark Fields addresses the Flat Rock Assembly Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)

And, since then, the Mexico plant has been a contentious subject, especially between the automaker and President-elect Donald Trump.

In fact on Tuesday — mere hours before Ford's bombshell that it would scrap construction of the Mexico factory — the president-elect renewed his threat to tax companies who moved production abroad under the North American Free Trade Agreement, or NAFTA. 

In an interview with CNN, Ford CEO Mark Fields said that, despite Trump's persistent criticism, the automaker's decision was "done independently" of the president-elect.

Although it's true that small car sales have been particularly lousy with little sign of a change in demand — hence why Ford is still moving its produciton to Mexico —  Fields did say he was encouraged by Trump's promises of instituting pro-business policies. 

"This is a vote of confidence for President-elect Trump in some and of the policies he may be pursuing," Fields said at Ford's plant in Flat Rock. 

Flat Rock Assembly employees clap as Ford President and CEO Mark Fields addresses the auto plant, Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)Flat Rock Assembly employees clap as Ford President and CEO Mark Fields addresses the auto plant, Tuesday, Jan. 3, 2017, in Flat Rock, Mich. (AP Photo/Carlos Osorio)

Ford is not alone in receiving criticism regarding business dealings from the president-elect.

Since November's election, Trump has been outspoken in voicing his disapproval of specific manufacturers, specifically attacking Boeing, Lockheed Martin and —  most notably —  Carrier Corp. 

What do you think about Ford's decision to halt construction of the Mexico plant? Comment below or tweet me your thoughts @MnetNews

 

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