That plant isn't expected to add any jobs as a result of the production shift in 2020; it produces the unpopular Ford Fiesta subcompact, giving it excess capacity already.
Earlier this year, we reported that Ford had decided to invest $700 million in its Flat Rock plant in Michigan to build an electric SUV with a 300-mile range.
DETROIT-Ford Motor Co.is shifting production of an all-electric vehicle to Mexico, while saying it will create 850 new jobs by continuing production in Flat Rock, Mich., of the Mustang, Lincoln Continental and an autonomous car it wants to sell to delivery fleets beginning in 2021. It will be shut down for two weeks to ease growing inventories of both models.
"During the 2015 negotiations with Ford, we secured significant product investment for our members at the Flat Rock assembly plant and other manufacturing facilities in the U.S.", said UAW Vice President Jimmy Settles.
The net effect is hundreds of additional American jobs there, he said. It has only one all-electric vehicle, and it is not competitive with either GM's Chevy Bolt or the Tesla Model 3, which each cost about $35,000 and can go more than 200 miles on a single charge.
The report also states that part of the reason for Ford's decision is that electric vehicles currently have a comparatively low profit margin. But it also entails the risk that the Trump administration could put steep taxes on new cars built in Mexico as it seeks to renegotiate the NAFTA trade deal.
As of last year, Ford had intended to build the autonomous vehicle at its planned small-car plant in San Luis Potosi, Mexico, but that facility was canceled in January. The program is usually used to reward those who find system vulnerabilities, and experts told Reuters that rewarding a thief was extremely unusual.