​​​
  1. Ford to move all small-car production to Mexico from US: CEO

Ford to move all small-car production to Mexico from US: CEO

Ford Motor Co Chief Executive Officer Mark Fields said on Wednesday that all of the company's small-car production will be leaving US. plants and heading to lower-cost Mexico.

By: | Published: September 14, 2016 11:04 PM
Ford is expected to post pretax profits of .2 billion in 2016, and in the past 18 months has made record pretax profit. The company said earlier Wednesday it expects profits to decline in 2017 as it invests in vehicle development, and hopes to improve its financial performance in 2018. (Source: Reuters)

Ford Motor Co Chief Executive Officer Mark Fields said on Wednesday that all of the company’s small-car production will be leaving US plants and heading to lower-cost Mexico.

“We will have migrated all of our small-car production to Mexico and out of the United States,” over the next two to three years, Fields told Wall Street analysts at an investor conference hosted by the automaker.

Earlier this year, Ford said it would invest $1.6 billion in Mexico for small-car production to start in 2018.

Republican presidential candidate Donald Trump has criticized Ford for moving US. jobs to Mexico. Fields has responded that as a global company, Ford must compete by making solid business decisions.

The Trump campaign did not immediately respond to requests for comment on Ford’s plans.

Ford is expected to post pretax profits of $10.2 billion in 2016, and in the past 18 months has made record pretax profit. The company said earlier Wednesday it expects profits to decline in 2017 as it invests in vehicle development, and hopes to improve its financial performance in 2018.

Fiat Chrysler Automobiles NV said in April it will realign North American plants to emphasize truck and Jeep production over car output. The changes are expected to be completed by early 2018.

Both automakers are making the moves because US. consumers have turned away from traditional sedans and hatchbacks to SUVs and pickup trucks.

The United Auto Workers, the US union, has said the number of auto assembly jobs will not decline because workers will be busy making SUVs and pickup trucks.

However, UAW President Dennis Williams has said there is a risk that if gasoline prices rise again above $4 per gallon as they were in mid-2008, consumers may favor smaller cars again.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top