In a big U-turn, Ford is canceling plans to build a new $1.6 billion plant in Mexico. Instead it will invest $700 million in Michigan — creating 700 new U.S. jobs.
The $700 million will be invested in Ford’s Flat Rock, Michigan plant to produce more electric and self-driving cars.
Ford executives spoke with President-elect Donald Trump and vice-president elect Mike Pence this morning. But Ford CEO Mark Fields said, “We didn’t cut a deal with Trump. We did it for our business”:
This is a vote of confidence” in Trump and the economy, said Fields. We are “encouraged by pro growth policies, particularly reform around tax and regulatory policies.”
Last year, Ford announced it would invest $1.6 billion in Mexico and transfer the production of the Ford Focus from Michigan to Mexico to save costs. During the presidential campaign, Trump often blasted Ford Ford on the campaign trail, claiming the company was moving good manufacturing jobs to Mexico. Trump also said as president he would tax vehicles Ford made in Mexico and shipped to the U.S. and said as a result they they’re not going to leave.
Trump adviser and former campaign manger, Kellyanne Conway tweeted out the Ford news:
— Kellyanne Conway (@KellyannePolls) January 3, 2017
Ford stock jumped 2.5% after the announcement.