After a decline in the demand for small cars, Ford have strategically decided to scrap their investment plan for their Ford Focus plant in Mexico. Instead, the automotive company will invest in Michigan to capitalise on the growing SUV and crossover trend.
The automotive giant stated that it is going to cancel it’s $1.6 billion investment proposal to build a manufacturing plant in Mexico’s San Luis Potosi. Instead of investing in Mexico, the company have re-directed their investment plans and have decided to plunge $700 million into their existing plant in Michigan, adding 700 direct new jobs.
Fortunately for Ford, the announcement came shortly after Trump announced on twitter that “General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!” making the decision a public relations victory.
Ford Motors plan to revive the Bronco sport-utility vehicle and the Ford Ranger mid-size pickup truck. American consumers still long for a rustic SUV, Ford aim to take advantage of the sentimentality these cars will ignite. Ford will produce the vehicles in Michigan, which may relieve tensions over the company’s decision to move Ford Focus production to Mexico.