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
car&bike Team | Jan 2, 20262026 Kia Seltos Launched In India At Rs 10.99 LakhOffered in 10 variants across three engine options, the second-generation Kia Seltos finally goes on sale in India.4 mins read
Jaiveer Mehra | Jan 1, 2026New Kia Seltos India Launch Tomorrow: Here’s What You Should KnowThe second-gen Seltos has grown in size, promising improved interior space while remaining a tech-laden package.1 min read
Preetam Bora | Jan 1, 2026Opinion: 2025 – The Year Of the Mid-Size Motorcycle Boom In IndiaThe mid-size motorcycle segment, encompassing 250-500 cc, truly came into its own in 2025. But will it be sustained going forward with increased GST rates?1 min read
Jaiveer Mehra | Dec 31, 2025Hyundai Creta Sales Cross 2 Lakh Units In CY2025Carmaker said the Creta diesel still accounts for over 40 per cent of all units sold, while the share of first time buyers stands at over 30 per cent.1 min read
Carandbike Team | Dec 30, 2025Hyundai Aura, Nios-Based Prime SD & Prime HB Taxis Launched In IndiaCarmaker rebrands fleet models under the Hyundai Prime brand rather than as separate variants of its passenger car range, as it previously did with the Xcent1 min read
car&bike Team | Dec 30, 2025VinFast's V-Green Partners With Hindustan Petroleum To Setup EV Charging StationsV-Green is owned by Pham Nhat Vuong, Chairman of Vingroup Corporation and founder of VinFast.1 min read
Preetam Bora | Dec 30, 2025TVS Orbiter Review: Real-World Performance and Range TestedThe TVS Orbiter is a promising electric scooter promising decent range, practicality and pricing. But is there any reason to avoid it? We spent a few days getting to know it better.9 mins read
Jafar Rizvi | Dec 24, 2025MG Windsor EV 38 kWh Long-Term Report: IntroductionThe Windsor EV has joined our garage, and before it settles into daily duty, I took it out to get a sense of what living with an electric car is like.4 mins read
Seshan Vijayraghvan | Dec 23, 20252026 Kia Seltos Review: Formula Is Spot On, But Is The Timing Right?The 2nd-gen Kia Seltos has arrived, but it has the challenge of facing strong rivals like the Victoris and Sierra. The question is simple - Does it still have what it takes?9 mins read
car&bike Team | Dec 26, 2025Tata Punch EV Long-Term Second Report: Highway Performance, Pros & ConsAfter a week of living with the Tata Punch EV Long Range—including a proper Mumbai-Nashik highway test—we've learned what this little electric SUV is really made of.1 min read
Seshan Vijayraghvan | Dec 22, 20252026 Tata Harrier & Safari 1.5 Hyperion Review: By The Power Of Petrol!The new Tata Harrier and Safari petrol packs a new 1.5-litre TGDI Hyperion engine, but is it an ideal alternative to the diesel version?7 mins read