Ford Invests $900 Million to Build Electric Vehicles in Michigan

Ford will invest 900 million dollars 7.915 million euros at the current rate) in the state that houses its headquarters, Michigan, in a nod to the demands of Donald Trump, president of the US, and his motto ‘make America great again’ (‘ Let’s make America again ‘).

Specifically, it will allocate 850 million dollars to its factory in Flat Rock, located 30 miles (50 km) from downtown Detroit, to manufacture electric vehicles. This amount will be executed until 2023 and would imply the implementation of a second work shift and 900 more employees. To this, $ 50 million of investment will be added to develop “an autonomous driving development center in southern Michigan” near Flat Rock. The plant will continue to manufacture the Ford Mustang and the Continental, a sedan from Lincoln, it’s the premium brand.

It would not be the first time that the oval banner announces that it is going to assemble electric vehicles in the US. In the face of Donald Trump’s threats to car manufacturers to cease their plans to expand production in Mexico, Ford decided in 2016 to cancel its investment of 1,600 million dollars to build a car plant in Mexico. He affirmed at that time that not only rejected this project but would make electric vehicles in Detroit, his headquarters.

However, in December 2017, Ford stated that its intention was to make its electric vehicles in Mexico, not in Detroit. In fact, in 2020 will reach the market a 100% electric SUV, manufactured in Cuautitlan. Of course, he would make “important investments” in Flat Rock for the development of the autonomous vehicle. Specifically for the robot that Ford planned to sell in series in 2021.

The Dearborn brand continues with its idea of producing and delivering those vehicles to transport people and goods that year, as announced last Wednesday. And it continues with its plan of investments in electrification and autonomous driving of 11,100 million dollars.

The reason for so much swing with what it costs to amortize a millionaire investment for an industry lies in the swings of President Trump. This dynamited the previous Nafta treaty, which precipitated a realignment of the productive strategy of the North American companies by threatening with a strong tariff the vehicles made in Mexico destined for sale in the US.

But after arduous conversations, in August 2018, the North American Free Trade Agreement (NAFTA) was sealed between the US and Mexico, to which Canada was added one month later.

Despite the fact that vehicles made in Mexico must have more parts made in the US if their final destination for commercialization is Trump’s country, which increased their manufacturing costs, the US automakers were profitable again. vehicles in Mexico.

This is the key that Ford has decided to manufacture the Transit Connect van from 2021 at its Hermosillo plant in Mexico and from there export it to North America. This will penalize Ford Almusafes (see attached text), which will lose the 45,000 units it exports to the US market.

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