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
Latest News
Jafar Rizvi | Aug 15, 2026Mahindra Scorpio Lifestyler Production vs Concept: What Has Changed?The Scorpio Lifestyler may look familiar, but Mahindra has made several changes in taking the Global Pik-Up from concept to production.3 mins read
Sarthak Mahajan | Aug 15, 2026Mahindra BE 6 Sporteq: In PicturesBE 6 Sporteq is also offered in two special editions: BE 6 Launch Edition and BE 6 Sporteq Formula E Freedom Edition.1 min read
Sarthak Mahajan | Aug 15, 2026Mahindra Scorpio Lifestyler Pick-Up: In PicturesNamed the Lifestyler in international markets, the Scorpio Lifestyler is based on the Scorpio N sold in India.3 mins read
car&bike Team | Aug 15, 2026Mahindra BE 6 Sporteq Launched At Rs 19.45 LakhBE 6 Sporteq replaces the outgoing standard BE 6 and gets a new 70 kWh battery pack option.2 mins read
car&bike Team | Aug 15, 2026Mahindra BE 6 Sporteq Formula E Freedom Edition Launched At Rs 24.45 LakhThe BE 6 Formula E Freedom Edition ditches the erstwhile design elements and is now in line with the standard model.2 mins read
Jaiveer Mehra | Aug 14, 2026Mahindra Scorpio Lifestyler Pick-Up Makes Global Debut; India Launch In 2027The Scorpio Lifestyler, just Lifestyler in international markets, is the production-ready variant of the Global Pik-Up Concept unveiled in 2023.3 mins read
Jaiveer Mehra | Aug 16, 2026Honda Amaze CVT Long Term First Report: 1800 Km InThe Amaze is the first sedan to join our long term feet in a year, and while on paper it lacks some of the features offered in its rivals, there’s plenty of promise in the package.1 min read
Preetam Bora | Aug 12, 2026Royal Enfield Himalayan 440 Custom Review: Beating RE to the PunchDelhi-based custom motorcycle shop TNT Motorcycles introduces packages to convert existing Himalayan 411 adventure bikes to Himalayan 440. Is it worth the expense?8 mins read
Seshan Vijayraghvan | Aug 11, 20262026 Nissan Tekton 700 km Review: Can It Conquer The Himalayas?We drove the newly launched Nissan Tekton from Chandigarh all the way up to Leh, covering over 700 km with the new SUV. From exploring the Tekton’s capabilities in the Himalayas to setting an India Book Record, here’s how the trip unfolded.8 mins read
Preetam Bora | Aug 11, 20262026 Aprilia Tuono 457 Special Edition First Ride Review: Should You Buy It?The 2026 Aprilia Tuono 457 delivers an engaging, everyday riding experience with strong performance. At its price point, the Tuono 457 is a brilliant motorcycle, but not quite the complete package. Why is that, and should you still buy it? Read on.8 mins read
Bilal Firfiray | Aug 1, 2026Toyota Hilux Review: The InvincibleMarking it as the ninth generation, the Hilux comes with a major cosmetic overhaul. But is it still relevant enough for the current times or is it getting too long in the tooth?5 mins read