According to reports, car-maker giant Ford Motor Company (NYSE:F) is planning to move US production of its new Ford Focus car to China in 2019, despite strong pressure to keep manufacturing jobs in America by the Government.
Ford Motor Company (NYSE:F) said in a statement that the decision would not result layoffs in the US. However the move marks another change to its plans for producing the new Focus.
In the start of 2017 US based company scrapped plans to move US production to a new $1.6 billion plant in Mexico after condemnation from Donald Trump. At present, Ford produces its Focus cars in Michigan, Germany and in China.
Nevertheless focus sales have dropped in the US, while demand for larger vehicles remains. It was planning to move US production of the Focus to a new factory near San Luis Potosi in Mexico.
That pronouncement drew severe disapproval from the US president, who has regularly blasted car makers and other firms for importing goods from other countries, like China and Mexico.
In the recent times Ford’s verdict to dispose of plans for a new plant in Mexico was seen as a victory for President Trump and his approach to US companies and global trade.
Meanwhile his personal and public interference seemed to have brought production of Ford’s new Focus model to the United States, a clear win for Mr Trump’s belief that merchandise bought by Americans should be made in the US.
Instead the Focus manufacturing moving to China instead was not part of the plan. So Ford obviously runs a risk of aggravating Mr Trump further.
This latest revelation means Ford Motor Company (NYSE:F) will make the new Focus in China, instead of Hermosillo – producing $500m in savings.
Moreover the giant carmaker said that the Michigan plant at this time manufacturing the Focus will switch to making trucks in 2018, with the same number of hourly workers.