Ford will build its electric SUV in Mexico

Ford Motor Company says it will shift future production of a forthcoming electric vehicle to Mexico instead of building it at the Flat Rock Assembly plant in MI as it had planned.

Ford Motor Co.is moving planned production of an electric crossover with a 300-mile range to Mexico from MI to make way for additional investment on autonomous vehicles in its home state.

The Flat Rock, Mich. factory had been designated for production of an unidentified electric vehicle.

As of a year ago, Ford had meant to build the autonomous vehicle at its planned small-car plant in San Luis Potosi, Mexico, but that facility was canceled in January.

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While President Trump won't be happy about Ford's decision to move production to Mexico, Ford does say that the decision to build the autonomous vehicle in MI will see it invest $200 million in the Flat Rock plant.

At the Flat Rock plant, Ford is boosting investment to US$900 million from US$700 million and adding 850 jobs. Information on the vehicle itself is still sparse, but it's said to be a hybrid and built on an entirely new platform.

In a blog post, Jim Farley, president of global markets, said Ford also would test new business models that involve its self-driving vehicles, including the movement of people and goods. At the time the company said it was planning to start production of the electric crossover with 300 miles of range in summer 2020 at Flat Rock, while a new autonomous model would commence production in 2021.

The report also states that part of the reason for Ford's decision is that electric vehicles now have a comparatively low profit margin. "I can't wait to share more with you about our plans and promise to do so throughout this journey we're on to create the future".

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