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

Ford CEO: U.S. plant expansion can be 'vote of confidence' in Trump

Ford can be canceling plans to build a fresh plant in Mexico. the item will invest $700 million in Michigan instead, creating 700 fresh U.S. jobs.

Ford (F) CEO Mark Fields said the investment can be a “vote of confidence” inside the pro-business environment being created by Donald Trump. However, he stressed Ford did not do any sort of special deal with the president-elect.

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“We didn’t cut a deal with Trump. We did the item for our business,” Fields told sy88pgw’s Poppy Harlow in an exclusive interview Tuesday.

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

Ford can be planning to roll out seven fresh electric vehicles inside the next all 5 years, including a Mustang Hybrid.

This particular can be a major U-turn for Ford. Trump repeatedly slammed Ford on the campaign trail for shipping U.S. jobs to Mexico (a claim the company said was wrong). The president-elect has kept up the pressure. Just hours before the Ford announcement, Trump criticized GM (GM) for producing cars in Mexico. All of the big car manufacturers currently have some production in Mexico.

Related: Sprint will create 5,000 U.S. jobs

A big U-turn for Ford

Last year, Ford announced the item might invest $1.6 billion in Mexico to transfer production of the Ford Focus through Michigan to Mexico to save costs. at This particular point the Focus will be built at an existing plant in Hermosillo, Mexico, along with Ford will instead expand its plant in Michigan.

Trump threatened to slap a 35% tariff on Ford vehicles made in Mexico along with sold inside the U.S., although experts say the item can be not possible for Trump do of which to just one U.S. company.

The president-elect reiterated of which threat again to GM Tuesday, tweeting, “Make in U.S.A. or pay big border tax!”

Ford’s CEO tried to walk a delicate line on how much Trump influenced This particular major change inside the company’s plans. He praised Trump for his vows to cut taxes along with scale back regulations on businesses, however stressed Ford’s decision was “done independently” of the president.

“This particular does make a heck of a lot of sense for business reasons. Political favor can be an advantageous byproduct,” says Bernard Swiecki, senior automotive analyst at the Center for Automotive Research in Michigan.

Ford can be saving money by investing only $700 million instead of the $1.6 billion the item originally planned.

After record years of U.S. car sales, there are signs of a slowdown. modest cars have been especially lousy sellers lately, which can be why Ford can be still moving production to Mexico. U.S. car workers make an average of $28 an hour, Swiecki says. In Mexico, workers average about $5.50 an hour.

Related: Car sales: The party may be over

Ford workers cheer

Trump won a lot of support through union workers for his tough talk on stopping jobs through going abroad along with renegotiating NAFTA. The United Auto Workers union of which represents Ford workers was “thrilled” with Ford’s fresh plans. So were employees at the Flat Rock plant.

“the item’s great news. Great for our future here, especially the fresh hires,” Chris Romano, a Ford factory worker in Flat Rock, told sy88pgw.

Workers at the plant make $20 to $30 an hour, Romano said. He believes the item was a “not bad call” by Trump to pressure companies to keep jobs inside the U.S.

Trump taking credit for jobs

Ford currently employs 85,000 Americans, up 28,000, or nearly 50%, through all 5 years ago. In Mexico, Ford employs 8,800.

The automaker fought back against Trump’s rhetoric on the campaign trail, saying he had his facts wrong along with of which the company never planned to cut any U.S. jobs. In October, Bill Ford called Trump’s criticism of the automaker founded by his great-grandfather “infuriating.” at This particular point the company can be softening its tone.

Ford stock jumped over 3% after the announcement.

Trump adviser Kellyanne Conway tweeted out the Ford news with just one comment: “#AmericaFirst.” Trump has been taking credit for numerous announcements companies like Carrier along with Sprint have made in recent weeks to keep jobs inside the U.S. or create fresh ones.

So far, commitments of 51,500 jobs have been made by Carrier, SoftBank along with Ford, although the item’s controversial how much of a role Trump played. The U.S. has been averaging about 125,000 private sector job gains a month for the past year under President Obama.

sy88pgw (fresh York) First published January 3, 2017: 11:04 AM ET

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

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