Ford Is Moving All Small-Car Production Out of the US

Ford Motor Co. says it's moving all of its US small-car production to Mexico. Ford CEO Mark Fields confirmed the long-expected move Wednesday during an event for investors and Wall Street analysts, the AP reports. Ford already makes its Fiesta subcompact in Mexico, but its Focus and C-MAX small cars are made in suburban Detroit. Making them in Mexico would boost company profits because of low wages there. The company is building a new $1.6 billion assembly plant in San Luis Potosi, Mexico, and will make small cars there starting in 2018. "Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields told investors.

Donald Trump—who has threatened to slap a 35% tariff on cars from Mexico—slammed the Ford move while campaigning in Flint on Wednesday, the Detroit Free Press reports. "We shouldn't allow it to happen," he said, warning that the move would increase unemployment. "They'll make their cars, they'll employ thousands of people, not from this country, and they'll sell their [cars] across the border." The Detroit News, however, reports that Ford says the move will not cost any jobs at its Michigan Assembly Plant in Wayne, which is expected to switch to making Ranger pickups and Bronco SUVs. (More Ford stories.)