Ford cancels plan to build plant in Mexico, will invest $700M in Michigan

DETROIT – Ford Motor Company announced Tuesday it will invest $700 million in the Flat Rock Assembly plant "to create a factory capable of producing high-tech electrified and autonomous vehicles -- plus the iconic Ford Mustang and Lincoln Continental."

The announcement is available in full below.

Moreover, the automaker said it is cancelling plans for a new $1.6 billion plant in Mexico. 

Related: Trump slams GM on Twitter for Mexican-made Chevy Cruze

The investment in the Flat Rock plant will create 700 direct new jobs, Ford said. 

Ford CEO and President Mark Fields made the announcement during a news conference Tuesday in Flat Rock.

"As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people’s lives better,” said Fields. “Our investments and expanding lineup reflect our view that global offerings of electrified vehicles will exceed gasoline-powered vehicles within the next 15 years."

The Dearborn-based automaker said the moves are part of a $4.5 billion investment in electrified vehicles by 2020, "offering customers greater fuel efficiency, capability and power across Ford’s global vehicle lineup. The plans are part of the company’s expansion to be an auto and a mobility company, including leading in electrified and autonomous vehicles and providing new mobility solutions."

Overall, Ford announced seven "global electrified" vehicles including: 

  • An all-new fully electric small SUV, coming by 2020, engineered to deliver an estimated range of at least 300 miles, to be built at the Flat Rock plant and sold in North America, Europe and Asia
  • A high-volume autonomous vehicle designed for commercial ride hailing or ride sharing, starting in North America. The hybrid vehicle will debut in 2021 and will be built at the Flat Rock plant
  • A hybrid version of the best-selling F-150 pickup available by 2020 and sold in North America and the Middle East. The F-150 Hybrid, built at Ford’s Dearborn Truck Plant, will offer powerful towing and payload capacity and operate as a mobile generator
  • A hybrid version of the iconic Mustang that will deliver V8 power and even more low-end torque. The Mustang Hybrid, built at the Flat Rock Plant, debuts in 2020 and will be available in the North America to start
  • A Transit Custom plug-in hybrid available in 2019 in Europe engineered to help reduce operating costs in even the most congested streets
  • Two new, pursuit-rated hybrid police vehicles. One of the two new hybrid police vehicles will be built in Chicago, and both will be up-fitted with their police gear at Ford’s dedicated police vehicle modification center in Chicago

"I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers,” said Jimmy Settles, UAW vice president, National Ford Department. “The men and women of Flat Rock Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success with a new generation of high-tech vehicles."

READ: Ford announces plan to create 700 U.S. jobs

CHECK: Automotive Page

Gov. Rick Snyder released the following statement regarding the announcement:

“We are seeing the drive toward the next chapter of the state’s legendary automotive history shift into a higher gear with Ford’s announcement. In the next decade, Michigan will lead the world in reimagining transportation with the acceleration of next generation advanced technologies. We are excited that Ford has chosen Michigan as its innovative home for their fully electric and autonomous hybrid vehicles. Thank you, Ford, for your continued confidence in our state and our people.”

U.S. Rep. Debbie Dingell (MI-12) applauded the announcement:

“It is a great day for manufacturing in Michigan and the United States with Ford’s announcement that its highest-tech vehicles will continue to be built right here in the U.S. Our challenge now is to continue to do everything we can – together – to keep Michigan at the forefront of innovation and technology and keep manufacturing in the United States. Today’s announcement demonstrates what can happen when we do work together at the federal, state and local levels with workers and manufacturers to keep jobs in the U.S. This announcement also shows that the American auto industry continues to lead the way in many areas that will define the future of mobility, including autonomous vehicles and electric vehicles."

UAW President Dennis Williams released the following statement:

"The UAW has long believed that companies that sell in our country should build their products in our country. We are proud of the quality of work in Lordstown with the Cruze sedan and we welcome Ford's Flat Rock announcement today."

Watch the announcement in full below:

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