Ford cancels plans for new $1.6B plant in Mexico
Ford has slammed the brakes on a plan to invest millions of dollars in a plant in Mexico and will instead upgrade a Michigan facility, crediting the move Tuesday as a “vote of confidence” in President-elect Donald Trump’s pro-growth agenda.
Ford CEO Mark Fields announced the U-turn at the Flat Rock Assembly Plant in Michigan, saying Trump’s [pro-growth tax and regulatory reform] policies were critical to the decision.
“We believe these tax and regulatory reforms are necessary to boost US competitiveness,” Fields told workers there.
The automaker canceled plans to build a $1.6 billion plant in San Luis Potosi, Mexico, and will spend $700 million to upgrade its Flat Rock plant and create 700 jobs to make electric and self-driving cars.
Hours after the deal was announced, Trump [tweeted]:
“Instead of driving jobs and wealth away, AMERICA will become the world’s great magnet for INNOVATION & JOB CREATION.”
Fields, in an interview on CNN, said the company changed its plans as as a strategic business move, betting that electric cars will eventually leave gas-powered cars in the dust.
“We didn’t cut a deal with the president-elect,” he insisted. “We did what’s right for our business, first and foremost. That’s what drives us in every business decision that we make.
“But we look at a lot of factors . . . and one of the factors that we see is again, this more positive US environment for manufacturing and investment here, and we take that into acｃount in our investment decisions, very clearly.”
Last month, when Fields declared that Ford was looking to work with the incoming administration, he suggested that it was too late to change the plan for a new factory in Mexico.
Ford still intends to move production of its Focus compact car to an existing plant in Mexico. The Focus is currently made in Wayne, Mich.
Fields said he notified Vice President-elect Mike Pence of the news before announcing it, and Pence “was very happy . . . that we’re making the investments here in America — not only good for Ford but good for the US and American workers.”
Bill Ford, the company’s ｅxecutive chair, spoke with Trump, who during the presidential campaign repeatedly slammed Ford for moving US jobs to Mexico.
After the election, Trump phoned Bill Ford to discuss the company’s plan to move manufacturing of the Lincoln MKC sport utility vehicle to Mexico from Louisville, Ky.
Fields said at the time that the discussion helped convince Bill Ford to keep building the Lincoln here. …
Ford [the second largest U.S. automaker] employs 85,000 workers in America and about 8,800 in Mexico. …
Trump’s campaign pledge to bring jobs back to America has proven to be more than a vow.
In December, air-conditioner-maker Carrier agreed to remain in Indiana after talks with Pence. That decision also saved about 700 jobs that would have ended up in Mexico.
Article Source:https://www.studentnewsdaily.com/daily-news-article/ford-cancels-plans-for-new-1-6b-plant-in-mexico/
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VOCABULARY WORDS
1.Regulatory/adjective: serving or intended to regulate something.
2.Competitiveness/noun: possession of a strong desire to be more successful than others.
3.Strategic/adjective: relating to the identification of long-term or overall aims and interests and the means of achieving them.
4.Eventually/adverb: in the end, especially after a long delay, dispute, or series of problems.
5.Administration/noun: the process or activity of running a business, organization, etc.
6.Wealth/noun: an abundance of valuable possessions or money.
7.Innovation/noun: the action or process of innovating.
8.Dust/noun: fine, dry powder consisting of tiny particles of earth or waste matter lying on the ground or on surfaces or carried in the air.
9.in·stead/adverb: as an alternative or substitute.
10.Facility/noun: a place, amenity, or piece of equipment provided for a particular purpose.
"cooking facilities"
QUESTIONS FOR DISCUSSION
1. The first paragraph of a news article should answer the questions who, what, where and when. List the who, what, where and when of this news item. (NOTE: The remainder of a news article provides details on the why and/or how.)
2. What was Ford going to do? What will they now do instead?
3. For what reason(s) did Ford make this decision? – How did Ford CEO Mark Fields explain the decision?
4. How did President-elect Trump react to Ford’s announcement?
5. How did Vice President-elect Mike Pence react to the news?
