- Ford announced plans on Wednesday to move all production of small cars to Mexico in the next two years.
- The move will have Ford spending nearly $2 billion on a new plant in Mexico and hiring nearly 3,000 new workers.
- Donald Trump was in Michigan when the announcement was made and wasn’t happy, saying, “We shouldn’t allow it to happen.”
- Ford is only the latest of many car companies to send production across the border.
Ford is sending all their small-car production from the U.S. to Mexico.
CEO Mark Fields talked to investors in Dearborn on Wednesday and said that even though moving production to Mexico is a hot-button issue right now in the election, he still planned to do it.
“Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States,” Fields said.
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Donald Trump, who was in Flint, Michigan when the statement was made was not happy, “We shouldn’t allow it to happen. They’ll make their cars, they’ll employ thousands of people, not from this country and they’ll sell their car across the border,” Trump said. “When we send our jobs out of Michigan, we’re also sending our tax base.”
However, Ford is not the first automaker to announce plans to leave the U.S. manufacturing landscape. Fiat Chrysler Automobiles said earlier this year it will end production of all cars in the U.S. by the end of this year.
In the past few years, automakers General Motors, Honda, Hyundai, Nissan, Mazda, Toyota, and Volkswagen have all announced plans to either expand existing plants or build new ones in Mexico.
While Mexico has seen a 40% increase in auto manufacturing jobs since 2008, growing to over 657,000, the U.S. has enjoyed only a 15% growth, growing just over 900,000, according to the Center for Automotive Research in Ann Arbor.
Now, this doesn’t come as a complete surprise, Ford said back in April that it would invest $1.6 billion in infrastructure and create 2,800 jobs in Mexico.
The head of the auto workers union blasted this decision saying, “There is no reason, mathematically, to go ahead and run to countries like Mexico, Thailand, and Taiwan. We all recognize there is a huge problem in Mexico. So we have to address it as a nation. The UAW cannot do it alone. We are not naive.”
Until disastrous trade agreements like NAFTA are repealed, this will be the new normal.