Ford Is Moving All Its North American Small-Car Production to Mexico Greg Gardner - The Los Angeles Times
go to original September 15, 2016

Ford Small-Car Production to Move from U.S. to Mexico (wochit News)

Ford Motor Co. is shifting all of its North American small-car production to Mexico, Chief Executive Mark Fields said Wednesday.

“Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States,” Fields said.

Ford currently makes its Fiesta subcompact in Mexico, but its Focus and C-Max small cars are made in suburban Detroit. Making them in Mexico would boost company profits because of low wages there.

The company is building a $1.6-billion assembly plant in San Luis Potosi, Mexico. It plans to make small cars there starting in 2018.

Ford's Michigan Assembly Plant, which currently makes the small cars, will be getting new products under a contract signed last year with the United Auto Workers union. They probably will be larger, more profitable vehicles such as the Ford Ranger pickup.

The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Shifting assembly to Mexico can reduce costs to a point.

Read the rest at The Los Angeles Times

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