Ford Cancels Mexico Plant, Trump's Predictions Come True
Cyrus Dhabhar
1 min read
Jan 04, 2017, 01:26 PM
Key Highlights
- Trump stated that cars made in Mexico will be levied with a Border Tax
- Ford said the move was to fully utilise capacity at existing facilities
- Ford will invest 700 million dollars in its Michigan facility
The Ford Motor Company has announced that it is cancelling its plans to build a 1.6 billion dollar factory in Mexico. Ford has also added that it will invest a further 700 million dollars in its existing facility at Flat Rock in the state of Michigan where it will produce future products from the Ford lineup.
The announcement comes following a statement made by United States President elect, Donald Trump that stated that cars made in the country of Mexico will be levied with a Big Border Tax.
Trump has named the latest iteration of the Chevrolet Cruze as an example of a car that is made in Mexico but sells popularly in the United States and will be levied with the tax if General Motors does not shift its production back to the United States. Currently, the United States and Mexico have a trade agreement where taxes are not levied on products moved from Mexico to the United States.
Following the statement, Mark Fields, Chief Executive of Ford Motor Company mentioned how the move was to fully utilize capacity at existing facilities in the midst of slumping sales of smaller Ford products like the Focus and the Fusion. Mark Fields also endorsed the ‘pro-growth’ policies that Trump and the Republican-led Congress plans to put into play post January 20, 2017 when Trump officially becomes the President.
The investment and updates in the Flat Rock, Michigan plant will essentially be used to expand the line for a new electric SUV that Ford has in its books for 2020. This new SUV will have a range of over 480 kilometers and will take on the likes of Tesla and Volkswagen amongst others. The new factory will also build ford’s fully autonomous car which will be production ready for fleet usage in 2021. Ford also has plans to build a hybrid version of the F150 pickup, the Mustang and several police cars too to improve on its overall fuel economy and emissions ratings as a group. The updates to the factory will add close to 700 new jobs.
Incidentally, Donald Trump in his election campaign speeches has categorically mentioned how Ford’s new factory in Mexico was an “absolute disgrace” and that he would slap hefty taxes on to any Ford vehicles that will be made in Mexico. In one of his campaign speeches, Trump said "They’ll say,‘Mr. President we’ve decided to move the plant back to the United States — we’re not going to build it in Mexico.’ That’s it. They have no choice”. Looks like Donald Trump did accurately predict this one then.
The announcement comes following a statement made by United States President elect, Donald Trump that stated that cars made in the country of Mexico will be levied with a Big Border Tax.
Trump has named the latest iteration of the Chevrolet Cruze as an example of a car that is made in Mexico but sells popularly in the United States and will be levied with the tax if General Motors does not shift its production back to the United States. Currently, the United States and Mexico have a trade agreement where taxes are not levied on products moved from Mexico to the United States.
Following the statement, Mark Fields, Chief Executive of Ford Motor Company mentioned how the move was to fully utilize capacity at existing facilities in the midst of slumping sales of smaller Ford products like the Focus and the Fusion. Mark Fields also endorsed the ‘pro-growth’ policies that Trump and the Republican-led Congress plans to put into play post January 20, 2017 when Trump officially becomes the President.
The investment and updates in the Flat Rock, Michigan plant will essentially be used to expand the line for a new electric SUV that Ford has in its books for 2020. This new SUV will have a range of over 480 kilometers and will take on the likes of Tesla and Volkswagen amongst others. The new factory will also build ford’s fully autonomous car which will be production ready for fleet usage in 2021. Ford also has plans to build a hybrid version of the F150 pickup, the Mustang and several police cars too to improve on its overall fuel economy and emissions ratings as a group. The updates to the factory will add close to 700 new jobs.
Incidentally, Donald Trump in his election campaign speeches has categorically mentioned how Ford’s new factory in Mexico was an “absolute disgrace” and that he would slap hefty taxes on to any Ford vehicles that will be made in Mexico. In one of his campaign speeches, Trump said "They’ll say,‘Mr. President we’ve decided to move the plant back to the United States — we’re not going to build it in Mexico.’ That’s it. They have no choice”. Looks like Donald Trump did accurately predict this one then.
Related News
Latest Cars
Upcoming Cars
Trending News
1 min readYamaha YZF-R2 Name Trademarked In India
1 min readTriumph Tracker 400: In Pictures
Latest News
car&bike Team | Dec 19, 2025Next-gen Audi Q3 Spied In India Ahead Of Launch In 2026Third-gen Q3 made its global debut in mid-2025, getting notable tech upgrades and electrified powertrain options.2 mins read
car&bike Team | Dec 19, 2025Yamaha YZF-R2 Name Trademarked In IndiaThe Yamaha R15, one of Yamaha India’s most popular motorcycle models, is likely to continue, even when the R2 finally makes it debut.1 min read
car&bike Team | Dec 18, 2025KTM 160 Duke With TFT Dash launched At Rs 1.79 LakhThe 5-inch colour TFT dash is borrowed from the 390 Duke and is shared across the brand’s sub-400cc lineup.2 mins read
car&bike Team | Dec 18, 2025Lamborghini Urus Seized By Cops Following Viral Clip Of Speeding On Bandra-Worli Sea LinkThe car was seized after a video of it allegedly overspeeding on the Bandra–Worli Sea Link, where the speed limit is capped at 80 kmph, went viral.2 mins read
car&bike Team | Dec 18, 20252025 Ducati XDiavel V4 India Launch Details RevealedThe new Ducati XDiavel V4 will be launched towards the end of December 2025 and will sit alongside the standard Ducati Diavel V4.3 mins read
Amaan Ahmed | Dec 18, 2025Maruti WagonR Swivel Front Seat Kit Launched: Check Price, AvailabilityBangalore-based startup TrueAssist Technology Private Limited has developed a mechanism that allows the front passenger seat to swivel outwards, in a bid to improve accessibility for the aged and persons with disabilities.2 mins read
Bilal Firfiray | Dec 19, 2025Maruti Suzuki e-Vitara Review: Worth The Wait?After a long wait, the first-ever electric Maruti Suzuki is here. It’s the e-Vitara, and it comes with a few promises. But arriving this late, is it worth the wait? Or is it a case of too little, too late?9 mins read
Bilal Firfiray | Dec 18, 2025Mercedes-Benz G450d: The Subtle Power of EvolutionThe Mercedes-Benz G 450d evolves subtly with more power, improved efficiency, and modern tech, while staying true to the timeless G-Class design. And character.4 mins read
Janak Sorap | Dec 11, 2025Harley-Davidson X440 T First Ride Review: Smarter and SharperHarley-Davidson has taken the X440 and given it a more focused and engaging twist. The result is the X440 T—essentially the same platform but updated in areas that give the motorcycle more appeal and riders more thrill.5 mins read
Shams Raza Naqvi | Dec 10, 20252025 Mini Cooper Convertible Review: More Colour On Indian RoadsThe updated Mini Cooper Convertible is set to be launched in the Indian market in the next few days. We drive it around Jaisalmer for a quick review.5 mins read
Bilal Firfiray | Dec 8, 2025Tata Sierra Review: India’s New Favourite?Marking its return after a few decades, the reborn Sierra has made everyone sit up and take notice. But is it worth the hype?10 mins read