Ford Motor Co. said Tuesday it was scrapping plans to build a $1.6-billion factory in Mexico and would invest $700 million to expand a Michigan plant to build electric and autonomous vehicles that will add 700 jobs there in a move Ford’s chief executive said was a “vote of confidence” in the economic policies of President-elect Donald Trump.
Ford isn’t abandoning expanded production in Mexico. The company said that to “improve company profitability” it would build its next-generation Ford Focus at an existing plant in Hermosillo, Mexico.
A company news release didn’t mention Trump, but Chief Executive Mark Fields told CNN on Tuesday that the new plans were “a vote of confidence” in the direction of the U.S. economy under the president-elect.
“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN. The company spoke with Trump and Vice President-elect Mike Pence about the news earlier Tuesday.