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Ford is moving its factory to China

Date : 2017-06-29 16:14  Comment
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  Ford is canceling controversial plans to build the Focus small car in Mexico, saving $1 billion by ending North American production entirely and importing the model mostly from China after next year.

  The U.S. automaker will start making the next-generation Focus in China from the second half of 2019, a year after output ends at one of its plants in Michigan. Ford will trim about $500 million in costs by shifting production to China, adding to the $500 million already saved from canceling construction of a small-car factory in Mexico earlier this year.

  “We’ve done a lot of research and consumers care a lot more about the quality and the value than they do about the sourcing location,” Joe Hinrichs, Ford’s president of global operations, said in a conference call with reporters Tuesday. “iPhones are produced in China, for example, and people don’t really talk about it.”

  After importing initial production of the new Focus cars from China, Ford said it will later ship variants of the model from Europe. The Michigan Assembly Plant now making the Focus will be retooled to produce the Ranger midsize pickup in late 2018 and the Bronco midsize SUV in 2020.

  “China gets a lot of attention, we’ll see how this plays out,” Hinrichs said in response to a question about possible criticism of the move from Trump. “But we believe this is a much better plan for our business globally. And it frees up from the original plan about $1 billion of capital that we can reinvest in the business, including exciting things that we’re working on in autonomy and electrification, and a lot of that work is done right here in the U.S.”
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