Ford to Start Building Next-Gen Focus in China After Mothballing Mexico Plant The Associated Press
go to original June 20, 2017

The United States remains Mexico’s biggest trading partner by far, but Donald Trump’s “America First” policy has Mexican companies looking for different options. With the renegotiation of NAFTA coming up, the Latin American nation is looking to China as that option. (CGTN)

Update: If NAFTA Ends, Ford's Move to China Will Be Just the Start (AS/COA)

Ford Motor Co. will export vehicles from China to the U.S. for the first time starting in 2019.

Ford will move production of its Ford Focus small car from the U.S. to China, where it already makes the Focus for Chinese buyers.

Ford’s president of global operations Joe Hinrichs says the move will save Ford US$1 billion, including $500 million from cancelling a new plant in Mexico that was intended to build the Focus.

“Finding a more cost-effective way to deliver the next Focus program in North America is a better plan, allowing us to redeploy the money we save into areas of growth for the company—especially sport utilities, commercial vehicles, performance vehicles as well as mobility, autonomous vehicles and electrified vehicles,” Hinrichs said.

Earlier this year, Ford cancelled a $1.6 billion plant planned for San Luis Potosi, Mexico after facing significant pressure from then President-elect Donald Trump. Despite the backlash, the automaker had maintained plans to continue producing the Focus at a plant in Hermosillo, Mexico.

Read the rest at Canadianmanufacturing.com

Related: Ford Mexico Sees No Immediate Impact on Jobs After China Focus Announcement (Reuters)

Related: Trump's Response to Ford's China Move Lacks Earlier Threats (Detroit Free Press)

Related: What a Changing NAFTA Could Mean for Doing Business in Mexico (Harvard Business Review)

Related: Ford, Tesla Eye China Production as No. 1 Auto Market Grows Influence (Investor's Business Daily)

Related: With U.S. Pullback, China Pursues Further Foothold in Latin American Business (The Washington Times)

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