Ford cancels Mexico plant. Will create 700 U.S. jobs in 'vote of - KMOV.com

Ford cancels Mexico plant. Will create 700 U.S. jobs in 'vote of confidence' in Trump

Posted: Updated:
Ford logo (Credit: Ford) Ford logo (Credit: Ford)

By Heather Long and Poppy Harlow

NEW YORK (CNNMoney) -- Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford CEO Mark Fields said the investment is a "vote of confidence" in the pro-business environment president-elect Donald Trump is creating. However, he stressed Ford did not do any sort of special deal with Trump.

"We didn't cut a deal with Trump. We did it for our business," Fields told CNN's Poppy Harlow in an exclusive interview Tuesday. He said Ford did speak with Trump and vice-president elect Mike Pence this morning.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gasoline-powered vehicles within the next 15 years.

"I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers," said Jimmy Settles, United Auto Workers vice president.

Ford is planning to roll out seven new electric vehicles in the next five years, including a Mustang Hybrid.

The news is a major U-turn for Ford. Last year, the company announced it would invest $1.6 billion in Mexico to transfer the production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will expand its plant in Flat Rock.

"Our announcements today are really a vote of confidence in the [U.S.] economy," said Fields.

Trump repeatedly slammed Ford on the campaign trail, claiming the company was moving good manufacturing jobs to Mexico. He vowed to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S.

Ford fought back against Trump's rhetoric, saying he had his facts wrong and that the company never planned to cut any U.S. jobs.

Ford currently employs 85,000 Americans, up 28,000, or nearly 50%, in just the last five years. In Mexico, Ford employs 8,800.

The-CNN-Wire™ & © 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.

  • NationalMore>>

  • At least 3 "tender age" shelters set up for child migrants

    At least 3 "tender age" shelters set up for child migrants

    Tuesday, June 19 2018 9:12 PM EDT2018-06-20 01:12:25 GMT
    Friday, June 22 2018 4:24 PM EDT2018-06-22 20:24:57 GMT
    Nicole Hernandez, of the Mexican state of Guerrero, holds on to her mother as they wait with other families to request political asylum in the United States, across the border in Tijuana, Mexico, on Wednesday, June 13, 2018. (AP Photo/Gregory Bull)Nicole Hernandez, of the Mexican state of Guerrero, holds on to her mother as they wait with other families to request political asylum in the United States, across the border in Tijuana, Mexico, on Wednesday, June 13, 2018. (AP Photo/Gregory Bull)

    Migrant babies and young children are being held in special "tender age" shelters after being taken from their parents at the US-Mexico border.

    More >

    Migrant babies and young children are being held in special "tender age" shelters after being taken from their parents at the US-Mexico border.

    More >
  • AP Explains: US has split up families throughout its history

    AP Explains: US has split up families throughout its history

    Wednesday, June 20 2018 1:41 AM EDT2018-06-20 05:41:08 GMT
    Friday, June 22 2018 4:23 PM EDT2018-06-22 20:23:57 GMT
    (AP Photo/File). FILE - In this March 30, 1942 file photo, Cpl. George Bushy, left, a member of the military guard which supervised the departure of 237 Japanese people for California, holds the youngest child of Shigeho Kitamoto, center, as she and he...(AP Photo/File). FILE - In this March 30, 1942 file photo, Cpl. George Bushy, left, a member of the military guard which supervised the departure of 237 Japanese people for California, holds the youngest child of Shigeho Kitamoto, center, as she and he...
    AP Explains: US has split up families and detained children throughout its history.More >
    AP Explains: US has split up families and detained children throughout its history.More >
  • 'Say bye to him': Detainee recounts agents taking her son

    'Say bye to him': Detainee recounts agents taking her son

    Tuesday, June 19 2018 1:31 PM EDT2018-06-19 17:31:01 GMT
    Friday, June 22 2018 4:23 PM EDT2018-06-22 20:23:38 GMT
    (Blanca Orantes-Lopez via AP). In this self portrait taken in Mexico in May 2018, Blanca Orantes-Lopez poses for a photo with her 8-year-old son, Abel Alexander, during the monthlong journey from their hometown of Puerto La Libertad, El Salvador, to th...(Blanca Orantes-Lopez via AP). In this self portrait taken in Mexico in May 2018, Blanca Orantes-Lopez poses for a photo with her 8-year-old son, Abel Alexander, during the monthlong journey from their hometown of Puerto La Libertad, El Salvador, to th...
    'Don't leave me, Mom': Woman from El Salvador describes separation from 8-year-old son after crossing border.More >
    'Don't leave me, Mom': Woman from El Salvador describes separation from 8-year-old son after crossing border.More >
Powered by Frankly