Ford Motor Co said Tuesday it will cancel a planned $1.6 billion factory in Mexico and will invest $700 million at a Michigan factory, after it had come under harsh criticism from President-elect Donald Trump for its Mexican investment plans.

The second largest U.S. automaker said it would build new electric, hybrid and autonomous vehicles at the Flat Rock, Michigan plant.

Ford Chief Executive Mark Fields said the decision to cancel the new plant in Mexico was in part related to the need to "fully utilize capacity at existing facilities" amid declining sales of small and medium sized cars such as the Focus and Fusion.

Fields also endorsed "pro growth" tax and regulatory policies advocated by Trump and the Republican led Congress.

Trump repeatedly said during the election campaign that if elected he would not allow Ford to open the new plant in Mexico, which he called an "absolute disgrace" and would slap hefty tariffs taxes on imported Ford vehicles.

Ford executive chairman Bill Ford Jr. told reporters that he spoke with Trump to notify him of the decision. A Ford source said the decision was influenced by Trump's policy goals such as lowering taxes and regulations but there were no negotiations between Ford and the Republican over the decision to cancel the Mexico plant or invest in Michigan.

Also on Tuesday, Trump threatened to impose a "big border tax" on General Motors Co for making some of its Chevrolet Cruze cars in Mexico. The New York businessman takes office on Jan. 20.

Fields said Ford will build a battery electric SUV with a 300-mile driving range at the Michigan plant by 2020, and will launch production there by 2021 of a fully autonomous vehicle without a steering wheel or a brake pedal for use in ride services fleets. Ford also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020.

Ford will add 700 jobs at the Flat Rock plant, Fields said, to cheers from union workers gathered at the factory for the announcement.

Ford in April announced it would invest $1.6 billion in the new plant in San Luis Potosi, Mexico to build small cars. The company said it will shift production from Michigan of its Focus to an existing plant in Hermosillo, Mexico. Trump had urged Ford to cancel the planned Mexican plant.

When Trump announced his campaign in June, 2015, he said Ford would cancel its planned Mexico investments. "They'll say,'Mr. President we've decided to move the plant back to the United States - we're not going to build it in Mexico.' That's it. They have no choice," Trump said.

Trump tweeted a link on Tuesday to a story about the decision.

Ford said it will add two new unnamed products at its Michigan Assembly Plant in Wayne, Michigan, where the Focus is manufactured today. </s> NEW YORK (CNNMoney) — Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment president-elect Donald Trump is creating. However, he stressed Ford did not do any sort of special deal with Trump.

“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gasoline-powered vehicles within the next 15 years.

“I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers,” said Jimmy Settles, United Auto Workers vice president.

Last year, Ford announced it would invest $1.6 billion in Mexico to build the Ford Focus. Instead, the Focus will be built at an existing plant in Mexico, and Ford will expand its plant in Flat Rock.

“Our announcements today are really a vote of confidence in the economy,” said Fields.

Trump repeatedly slammed Ford on the campaign trail, claiming the company was moving good manufacturing jobs to Mexico. He vowed to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S.

Ford fought back against Trump’s rhetoric, saying he had his facts wrong and that the company never planned to cut any U.S. jobs.

Ford currently employs 85,000 Americans, up 28,000, or nearly 50%, in just the last five years. In Mexico, Ford employs 8,800. </s> Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford (F) CEO Mark Fields said the investment is a "vote of confidence" in the pro-business environment being created by Donald Trump. However, he stressed Ford did not do any sort of special deal with the president-elect.

"We didn't cut a deal with Trump. We did it for our business," Fields told CNN's Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electrified vehicles will outsell gas-powered vehicles within the next 15 years.

Ford is planning to roll out seven new electric vehicles in the next five years, including a Mustang Hybrid.

This is a major U-turn for Ford. Trump repeatedly slammed Ford on the campaign trail for shipping U.S. jobs to Mexico (a claim the company said was wrong). The president-elect has kept up the pressure. Just hours before the Ford announcement, Trump criticized GM (GM) for producing cars in Mexico. All of the big car manufacturers currently have some production in Mexico.

Trump tweeted "thank you" to Ford Wednesday and said, "This is just the beginning - much more to follow."

https://twitter.com/realDonaldTrump/status/816635078067490816

Related: Sprint will create 5,000 U.S. jobs

A big U-turn for Ford

Last year, Ford announced it would invest $1.6 billion in Mexico to transfer production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will instead expand its plant in Michigan.

Trump threatened to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S., although experts say it is not possible for Trump do that to a single U.S. company.

The president-elect reiterated that threat again to GM Tuesday, tweeting, "Make in U.S.A. or pay big border tax!"

Ford's CEO tried to walk a delicate line on how much Trump influenced this major change in the company's plans. He praised Trump for his vows to cut taxes and scale back regulations on businesses, but stressed Ford's decision was "done independently" of the president.

"This does make a heck of a lot of sense for business reasons. Political favor is an advantageous byproduct," says Bernard Swiecki, senior automotive analyst at the Center for Automotive Research in Michigan.

Ford is saving money by investing only $700 million instead of the $1.6 billion it originally planned.

After record years of U.S. car sales, there are signs of a slowdown. Small cars have been especially lousy sellers lately, which is why Ford is still moving production to Mexico. U.S. car workers make an average of $28 an hour, Swiecki says. In Mexico, workers average about $5.50 an hour.

Related: Car sales: The party may be over

Ford workers cheer

Trump won a lot of support from union workers for his tough talk on stopping jobs from going abroad and renegotiating NAFTA. The United Auto Workers union that represents Ford workers was "thrilled" with Ford's new plans. So were employees at the Flat Rock plant.

"It's great news. Great for our future here, especially the new hires," Chris Romano, a Ford factory worker in Flat Rock, told CNN.

Workers at the plant make $20 to $30 an hour, Romano said. He believes it was a "good call" by Trump to pressure companies to keep jobs in the U.S.

The Mexican government said it "regrets" Ford's decision and stressed that jobs created in Mexico are not necessarily a loss for the U.S.

"Jobs created in Mexico have contributed to maintaining manufacturing jobs in the United States, which would otherwise have disappeared to Asian competition," the Mexican government said in a statement Tuesday.

Trump taking credit for jobs

Ford currently employs 85,000 Americans, up 28,000, or nearly 50%, from five years ago. In Mexico, Ford employs 8,800.

The automaker fought back against Trump's rhetoric on the campaign trail, saying he had his facts wrong and that the company never planned to cut any U.S. jobs. In October, Bill Ford called Trump's criticism of the automaker founded by his great-grandfather "infuriating." Now the company is softening its tone.

Ford stock jumped over 3% after the announcement.

Trump adviser Kellyanne Conway tweeted out the Ford news with just one comment: "#AmericaFirst." Trump has been taking credit for a number of announcements companies like Carrier and Sprint have made in recent weeks to keep jobs in the U.S. or create new ones.

So far, commitments of 51,500 jobs have been made by Carrier (800 jobs), Ford (700 jobs) and SoftBank (50,000 jobs, which includes the 5,000 at Sprint), although it's controversial how much of a role Trump played.

The U.S. has been averaging about 125,000 private sector job gains a month for the past year under President Obama. </s> Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.

Ford (F) CEO Mark Fields said the investment is a "vote of confidence" in the pro-business environment being created by Donald Trump. However, he stressed Ford did not do any sort of special deal with the president-elect.

"We didn't cut a deal with Trump. We did it for our business," Fields told CNN's Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gas-powered vehicles within the next 15 years.

Ford is planning to roll out seven new electric vehicles in the next five years, including a Mustang Hybrid.

Ford executives spoke with Trump and vice-president elect Mike Pence this morning. Just hours before the Ford announcement, Trump criticized GM (GM) for producing cars in Mexico.

"I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers," said Jimmy Settles, United Auto Workers vice president.

The news is a major U-turn for Ford. Last year, the company announced it would invest $1.6 billion in Mexico to transfer production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will instead expand its plant in Michigan.

"This is a vote of confidence" in Trump and the economy, said Fields. We are "encouraged by pro-growth policies, particularly reform around tax and regulatory policies."

Trump repeatedly slammed Ford on the campaign trail, claiming the company was moving good manufacturing jobs from the U.S. to Mexico. He vowed to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S., although experts say it is not possible for Trump do that to a single U.S. company.

"When that car comes back across the border into our country that now comes in free, we're gonna charge them a 35% tax," Trump told Fox in September. "And you know what's gonna happen, they're never going to leave."

Related: Car sales: The party may be over

Ford fought back against Trump's rhetoric, saying he had his facts wrong and that the company never planned to cut any U.S. jobs.

Ford currently employs 85,000 Americans, up 28,000, or nearly 50%, from five years ago. In Mexico, Ford employs 8,800.

Trump adviser Kellyanne Conway tweeted out the Ford news with just one comment: "#AmericaFirst." Trump has been taking credit for a number of announcements companies like Carrier and Sprint have made in recent weeks to keep jobs in the U.S. or create new ones.

So far, commitments of 51,500 jobs have been made by Carrier, SoftBank and Ford, although it's controversial how much of a role Trump played. The U.S. has been averaging about 125,000 private sector job gains a month for the past year under President Obama.

Michigan Governor Rick Snyder sent out a statement: "Thank you, Ford, for your continued confidence in our state and our people." </s> FLAT ROCK, Mich. (AP) – Ford is canceling plans to build a new $1.6 billion factory in Mexico and will invest $700 million in a Michigan plant to build new electric and autonomous vehicles.

Ford, however, still plans to shift production of the Focus small car to Mexico and will make the car at an existing plant. President-elect Donald Trump has been pressuring Ford to keep production of the Focus in the U.S.

The company made the announcements Tuesday at a factory in Flat Rock, Michigan, near Detroit. The factory will get 700 new jobs.

Among the new vehicles it will make are a fully electric small SUV with 300 miles of range.

Ford also plans a gas-electric hybrid version of the F-150 pickup. </s> Ford Motor Company [NYSE: F] announced today that it will spend $700 million to turn its Flat Rock, Michigan, assembly plant into a hub for electric and self-driving vehicle assembly.

Separately, the automaker says that it is canning a $1.6 billion new plant it had intended to build in Mexico.

Sources close to the automaker reportedly told media gathered this morning in Flat Rock, a suburb of Detroit, that the decision to allocate investment in Michigan and not Mexico was not due to negotiations with the incoming Donald Trump administration. However, Ford executives spoke with Trump this morning to inform the president-elect and his team ahead of the automaker's formal announcement.

MORE: Details on Ford's hybrid and electric push

The investment in Michigan will create 700 new jobs there, Ford says. It did not say how many jobs were planned for the now-canceled plant in San Luis Potosi, Mexico. However, Ford is by no means exiting vehicle assembly in Mexico; it confirmed today that its next-generation Focus compact car will be built there, at its plant in Hermosillo, Mexico.

The Flat Rock plant currently builds the Ford Mustang and Lincoln Continental, but it will soon also operate as something of a hub for hybrid, electric, and autonomous cars. Ford announced today that three new products will be built in Flat Rock soon:
• In 2020, an all-electric small SUV/crossover to be sold in North America, Europe, and Asia.
• In 2020, a hybrid version of the Ford Mustang sports coupe
• In 2021, a self-driving hybrid vehicle designed for ride-sharing and taxi use.

While Ford has so far remained mostly mum about these vehicles' details, they are part of a $4.5 billion investment in electric and hybrid tech to be spread across several facilities.

Follow The Car Connection on Facebook and Twitter. </s> Ford is scrapping its plans for a new $1.6 billion plant in San Luis Potosi, Mexico, and will invest $700 million in the expansion of the Flat Rock, Michigan plant, Bloomberg News reports. </s> Before he's even taken office, President-elect Donald Trump has proven to be quite the job creator.

Ford Motor Company announced Tuesday it will cancel a $1.6 billion plant planned for Mexico and will instead invest $700 million in a Michigan assembly plant, directly tying the decision to “pro-growth policies” championed by President-elect Donald Trump.

Instead of driving jobs and wealth away, AMERICA will become the world's great magnet for INNOVATION & JOB CREATION.https://t.co/siXrptsOrt — Donald J. Trump (@realDonaldTrump) January 3, 2017

Trump had previously been critical of Ford’s plans to build in Mexico. After the announcement, Trump tweeted a link to a story about the Ford decision and then added in a subsequent message: "Instead of driving jobs and wealth away, AMERICA will become the world's great magnet for INNOVATION & JOB CREATION."

“We’re doing this decision based on what’s right for our business,” Ford CEO Mark Fields told Neil Cavuto on Fox Business Network. “As we think about the investments here in Michigan, as you can imagine, Neil, we look at a lot of factors as we make those. One of the factors that we’re looking at is a more positive U.S. manufacturing business environment under President-elect Trump and some of the pro-growth policies he said he’s going to pursue. And so this is a vote of confidence.”

WATCH: FORD CEO MARK FIELDS ON FOX BUSINESS NETWORK

Fields said Ford would have gone ahead with the decision whether or not Trump was elected president, however, he did say that he alerted both Trump and Vice President-elect Mike Pence ahead of the announcement on Tuesday.



The Ford news was the latest in a string of pre-inauguration successes for Trump in the manufacturing sector.

In early December, air conditioner and furnace maker Carrier agreed to stay in Indiana after weeks of negotiations headed by Pence. The decision reportedly saved about 700 jobs that would have been shifted to Mexico.

Later in the month, wireless provider Sprint and Internet company OneWeb announced they would be adding thousands of jobs in the U.S. Both companies are controlled by SoftBank founder Masayoshi Son, who had previously met with Trump.

Earlier Tuesday morning, Trump took aim at another auto giant: General Motors.

"General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!" Trump tweeted.

GM, however, quickly pushed back on Trump's assertions.

"GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S." a statement said.

The investment in the Flat Rock Assembly Plant is set to create 700 jobs, according to Fields. The money, which was taken from the $1.6 billion earmarked for the Mexico plant, will be used to open a new factory that will build high-tech autonomous and electric vehicles as well as the Mustang and Lincoln Continental, the company said in a press release.

"I am thrilled that we have been able to secure additional UAW-Ford jobs for American workers," UAW Vice President Jimmy Settles said in the release. "The men and women of Flat Rock Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success with a new generation of high-tech vehicles." </s> By Josh Boak and Tali Arbel, The Associated Press

WASHINGTON — After meeting with Donald Trump on Tuesday, Japanese tech billionaire Masayoshi Son said he will invest $50 billion in the United States and would “commit” to creating 50,000 new jobs over an unspecified time period.

Son is the founder and chief executive of SoftBank, one of Japan’s largest technology outfits, which owns the U.S. mobile carrier Sprint. Sprint shares initially spiked after the announcement. Son left Trump Tower after being escorted down the elevator by the president-elect, who touted the pledge before waiting investors.

The announcement is the latest instance in which Trump appears to be conducting economic policy via ad-hoc deal-making — sometimes taking credit whether he deserves it or not. Last week, the president-elect spoke at the Carrier furnace plant in Indianapolis after the company announced plans to keep 800 jobs at the plant instead of outsourcing them to Mexico. Trump quickly claimed he had saved those positions, even though the company is still shifting more than 1,000 jobs from that factory and another Indiana plant to Mexico.

Similarly, the week after the election Trump tweeted that he had dissuaded Ford Motor Co. from moving a Kentucky factory to Mexico. The claim was a stretch; Ford had no plans to move the plant and had already agreed to keep producing one specific model there, although it did back away from a plan to shift production of the Lincoln MKC, a small SUV, from Louisville to Cuautitlan, Mexico.

Trump quickly took credit for Son’s commitment on Tuesday, writing on Twitter: “Masa said he would never do this had we (Trump) not won the election!”

“I just came to celebrate his new job,” Son said. “I said, ‘This is great, the U.S. will become great again’.”

Trump plans to meet with leading tech executives next week, a group that will include venture capitalist Peter Thiel — one of Trump’s few supporters in Silicon Valley — and Cisco Systems CEO Chuck Robbins. The job commitments that Trump claims to have produced are symbolically resonant. Still, the economy has generated 2.25 million new jobs in the past 12 months and many economists say that accelerating this pace may be difficult in the long run because of the aging U.S. population.

Financial details about Son’s commitment and its timeframe remain unclear. Softbank and T-Mobile did not answer emailed questions. Sprint spokesman Dave Tovar referred questions to Softbank. Foxconn, a tech manufacturer that makes iPhones for Apple in China, also did not answer questions. Its logo was next to Softbank’s on a piece of paper Son carried.

Sprint has struggled since its 2013 acquisition by Softbank. The carrier’s attempt to join with rival T-Mobile failed in 2014 after regulators objected to combining two of the four largest mobile telecom companies in the United States. T-Mobile has surpassed Sprint to become the No. 3 carrier, while Sprint has struggled with cost cuts and layoffs. (AT&T and Verizon are the largest wireless carriers.)

Analysts have predicted, however, that a Trump-led Justice Department and Federal Communications Commission would be more likely to allow telecom mergers , including a deal between Sprint and T-Mobile. T-Mobile has 50,000 employees and a stock-market value of $46 billion — but the similarities between those numbers and Son’s commitment could just be a coincidence.

In October, SoftBank announced that it would establish a $25 billion fund for technology investments that could grow to $100 billion. SoftBank said it signed an agreement with a fund run by the government of Saudi Arabia and other investors.

In addition to Sprint, SoftBank owns Britain’s ARM Holdings. ARM is known as an innovator in the “internet of things,” and in technology used in smartphones. It also sells the Pepper human-shaped companion robot for homes and businesses, and runs a solar energy business in Japan. The company, founded in 1981, also has within its investment empire financial technology and ride-booking services.

AP technology writer Michael Liedtke contributed to this report from San Francisco. </s> Ford previously said the reorganization would result in $11 billion in charges. The factory in Sao Bernardo do Campo, an industrial suburb of Sao Paulo, has operated since 1967 and was Ford's first plant in Brazil. Although it once produced a number of auto models, it now makes F-4000 and F-350 trucks, as well as the poor-selling Fiesta.

Ford said on Jan. 10 it would cut thousands of jobs and look at plant closures in Europe as part of its plan to return to profit in the region.

Following that announcement, analysts and investors had expected a similar restructuring in South America. Ford Chief Executive Jim Hackett said last month that investors would not have to wait long for the South American reorganization plan.

Ford shares were up 3 percent at $8.80 on the news in late afternoon in New York.

The closure of the factory may mean Ford is refocusing on the core of its car business in Latin America's largest economy, based in a much newer factory in the northeastern state of Bahia.

But the job cuts in Brazil's industrial heartland will represent a psychological blow for the still new administration of far-right president Jair Bolsonaro, who is battling an unemployment rate that is above 10 percent.

A representative for the union in Sao Bernardo did not have an immediate comment.

Brazilian Ford dealers' association head Luiz Albuquerque said the move eased a sense of uncertainty.

"For the car dealers, this gives us a sense of calm," said Albuquerque, "because Ford has been losing money in the region for the past four or five years and the closure of the truck business will almost completely erase that loss."

Albuquerque had met with the Ford leadership last week where they had guaranteed new investments in cars for the next three or four years.

Ford South America President Lyle Watters said on Tuesday the automaker remains "committed" to South America, a region where it is not currently profitable.

“We know this action will have a major impact on our employees in São Bernardo and we will be working closely with all our stakeholders on the next steps,” Watters said in a statement.

The No. 2 U.S. automaker expects to record pretax special charges of about $460 million, with most of that recorded this year, it said in the statement.

Ford said Tuesday's announcement follows other moves, including reducing salaried and administrative costs in the region by more than 20 percent over the past few months.
Ford announces that it has cancelled plans to build a $1.6 billion plant in Mexico, long criticized by U.S. President-elect Donald Trump, and will invest $700 million in its Michigan plant in Flat Rock, potentially creating 700 new jobs from the investment and expansion of the plant.