Ford Won't Invest in Mexico; Adds 700 Michigan Jobs

(Updated) Ford Motor Co. said Tuesday it won't invest $1.6 billion in a plant in Mexico but instead would put $700 million into expansion of one of its Michigan plants, CNBC is reporting. The automaker's foreign investment plan was attacked by President-elect Donald Trump, who said he would subject the company to steep tariffs on the importation of goods manufactured in Mexico.

Ford CEO Mark Fields told CNN the decision was partially based on the need to create a "more positive manufacturing environment" in the United States under Trump's leadership. But he stopped short of saying the deal was negotiated with Trump.

Fields met with Vice President-elect Mike Pence Tuesday morning.

Ford said 700 jobs will be created in the expansion of a plant in Flat Rock, Michigan, where "high-tech autonomous and electric vehicles along with the Mustang and Lincoln Continental" will be built.

"As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people's lives better," Fields said in a video announcement of the plans. "Our investments and expanding lineup reflect our view that global offerings of electrified vehicles will exceed gasoline-powered vehicles within the next 15 years."

Ford isn’t the only Big Three automaker to be singled out by Trump for moving some manufacturing operations to Mexico. In a tweet Tuesday, the president-elect threatened General Motors with “big border tax” for importing its Chevrolet Cruzes made in Mexico. Cruzes manufactured in the United States are made exclusively in Lordstown, Ohio, near Cleveland.

In statements, GM said the majority of Cruzes are manufactured at an assembly complex in Lordstown, Ohio, but some production was shifted to Mexico last summer to help meet consumer demand.

Photo via Ford Motor Co.