McALLEN, RGV – Ford Motor Co. said Tuesday it will cancel a planned $1.6 billion production plant in San Luis Potosi, Mexico, and will invest $700 million at a Flat Rock, Michigan, factory as it expands its electric vehicle and hybrid offerings.
The company said it will continue to build its Focus at an existing plant in Hermosillo, Mexico, to improve company profitability.
The plan for a plant in San Luis Potosi was to produce 350,000 cars annually. Eventually, the new Ford Focus could have been produced there, moving from Ford’s Wayne, Michigan plant.
The additional investment in the U.S. will include boosting production of its Ford Mustang and Lincoln Continental models.
San Luis Potosi has sister city agreements with a number of border cities in Texas, including Pharr, McAllen and Laredo.
Ford is the second largest U.S. automaker. It came in for criticism from President-Elect Donald Trump during the presidential campaign for planning to expand operations in Mexico. Last year, Trump touted that he helped stop Ford from moving an entire factory from Kentucky to Mexico.
Ford CEO Mark Fields (pictured above) told CNN that the move is a “vote of confidence” in President-elect Donald Trump’s pledge to create a pro-business environment. However, Fields said he did not negotiate a special deal with Trump.