The growing competition in the automobile sector it causes situations like that will live in Ford Motor Company in a short time. Before Donald Trump came to the White House criticized Ford for his ties to business with Mexico. The signature blue oval was starting on the construction of a plant that was cancelled from night to day and has therefore had to take charge of compensation for breach of the committed investment.
The cancellation of the plant in San Luis Potosi, would not result in a breakdown of your finances, but evidently the production of some of their models would be costly. However, the makers of the brand they would have taken a decision, controversial to say the least, to save on production costs a figure close to $ 500 million.
The american group has announced a new investment of $ 900 million to improve the production lines of the factory that already has in Kentucky. This facility will start production of the new Ford Expedition and Lincoln Navigatos making it possible, again, the plant. What has surprised us on the way, is the following investment in the brand.
According to Ford, the next generation of the Focus will be assembled for everyone in the plant that have in the chinese city of Changan. The plant of the United States, where it assembles models for the local market will give way to the new Ranger and Bronco allowing the installed industrial capacity is not left idle.
If you meet the deadlines that Ford has given to the arrival on the market of the new generation of the Focus the production should start by mid-year 2019. However, since the brand has not specified which versions will be manufactured in China for the whole world. It is understood that the variants ts and RS follow out of the centers that the brand has in Europe.
To justify this strategic decision Joe Hinrichs, Executive Vice president and President of Global Operations of Ford has declared that they have
“finding ways to be more cost-effective to carry out the next program of production in North America that allows us to re-deploy the money that we save in areas of growth for the company, especially SUVs, commercial vehicles, high performance vehicles, as well as mobility autonomous vehicles and vehicles electrified“.
With this decision we do not believe that to give taste to Donald Trump, because, if before the attack its trade relations with Mexico now the hate by manufacture directly in China one of the most representative models of Ford. Time will tell that eventually passed.
Source – Ford Motor Company
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