Ford to move US small-car production to Mexico over three-ish years
And a certain politician will have a field day with that news.
Ford could be about to draw more criticism as it plans to move all of its small-car production to Mexico.
The automaker has been the subject of vitriol based on its decision to outsource some of its vehicle production south of the border. There are solid business reasons for that decision, but nevertheless, it's still catching some flak. And with this news, the gathering cloud of shrapnel is only likely to grow.
During an investor conference, Ford CEO Mark Fields told a group that the company will move its entire US small-car production south of the border over the next two to three years, Reuters reports. The automaker plans to invest over $1 billion in Mexican manufacturing over that time.
Of course, this isn't sitting well with politicians that have tried to bring more manufacturing jobs to the US. The problem is, small cars are not profitable when manufactured here. Fiat Chrysler has nixed or outsourced its small car production to make ends meet. GM produces a number of its vehicles outside the US, as well.
The real money is in trucks, most of which are still manufactured in the US. In order to maximize profits (the goal of a for-profit business), you have to focus on the parts of the business that make money. As buying preferences move to crossovers and stay with trucks, especially with gas prices staying low, it's unlikely that this trend will reverse in the coming years.
