Ford Motor Co. is canceling plans to build a new manufacturing plant in Mexico and instead is investing $700 million in Michigan, the automaker announced.
Ford CEO Mark Fields said the decision is a “vote of confidence” in President-elect Donald Trump’s pledge to create a pro-business environment.
Trump had earlier criticized Ford’s plan to invest $1.6 billion in Mexico by shifting its North American small-car production south of the border. Ford had emphasized that the move would not affect U.S. jobs because the automaker would be putting new vehicles into the Michigan plants.
Ford has now decided to build the Ford Focus at an existing plant in Mexico. It will also invest $700 million in its plant in Flat Rock, Michigan and create 700 jobs in an effort to produce more electric and self-driving cars.
“I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers,” said Jimmy Settles, United Auto Workers vice president.