Ford News: Ford Moving Focus Production to China

[Drew Dowdell]

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Ford announced today that once the current Ford Focus ends production in mid-2018, the model will shift production of the 2019 Ford Focus to China rather than Mexico. 

The Focus is currently built at Ford's Michigan Assembly in Wayne, MI along side the C-Max Hybrid.  It has been known since mid-2015 that Focus production would be moving out of the U.S. once this model run was finished.

During the 2016 Presidential election, then Candidate Trump criticized Ford for the move to Mexico, however Ford pointed out that they were making room for the upcoming Ford Ranger and Ford Bronco and that no jobs at Wayne Assembly will be lost as it retools for truck and SUV production.

The Ford Focus will be the third vehicle sold in the United States built in China.  The other models currently manufactured in China for U.S. consumption are the Volvo S60 Inscription and the Buick Envision. Ford states this move will save $500 million on top of $500 million projected from a move to Mexico. Part of that savings comes from a reduction of the number of plants. Ford will only re-tool the plant in China rather than both China and North America.

In the same announcement, Ford stated they will spend $900 million to retool its Kentucky Truck plant for the new 2018 Ford Expedition and 2018 Lincoln Navigator. 

No word as to which vehicle will take the place of the Focus in the Mexico plant.

Press Release on Page 2

Source: Ford Media, Picture courtesy of Ford Motor Company

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FORD INVESTS IN KY. PLANT TO BUILD NEW EXPEDITION, NAVIGATOR; SMART, SPACIOUS NEW FOCUS FOR N.A. TO BE GLOBALLY SOURCED

• Ford is investing $900 million in Kentucky Truck Plant, securing 1,000 U.S. hourly jobs to build all-new Ford Expedition and Lincoln Navigator
• All-new Ford Expedition and Lincoln Navigator to be exported to more than 55 markets  globally – including Navigator to China; the company is a top auto exporter in the U.S.
• Exciting new Ford Focus on the way for North American customers beginning in 2019 with more technology, more space and a number of new Focus models. Next-generation Focus for North America will be globally sourced primarily from China – rather than Hermosillo, Mexico – with production starting in the second half of 2019. Current model production ends in mid-2018
• This manufacturing plan allows the company to further grow its leadership as an exporter and deliver world-class Focus to North American customers in a way that makes business sense – with no U.S. employees out of a job
• Ford is saving $1 billion in investment costs versus its original Focus production plan, improving the financial health of its Focus business and further improving manufacturing scale in China – all helping create a more operationally fit company

DEARBORN, Mich., June 20, 2017 – Ford today announced manufacturing actions centered on improving the company’s operational fitness and building vehicles that excite customers around the world.

Ford is investing $900 million in Kentucky Truck Plant for plant upgrades to build the all-new Ford Expedition and Lincoln Navigator, which begin arriving in dealerships this fall. Both full-size SUVs will be exported to more than 55 markets globally – including Navigator to China. Ford is a top auto exporter in the U.S.

The $900 million investment secures 1,000 jobs for hourly workers at the Louisville plant. This is in addition to the $1.3 billion investment and 2,000 jobs created at that plant in late 2015 to build the all-new Ford Super Duty. Kentucky Truck employs nearly 7,600 full-time hourly workers – and Ford has more U.S. hourly workers and builds more vehicles in the U.S. than any other automaker.

“Large SUVs are attracting a new generation around the world – and we’re finding new ways to deliver the capability, versatility and technology that customers around the world really want with our all-new Ford Expedition and Lincoln Navigator,” said Joe Hinrichs, Ford executive vice president and president, Global Operations. “At the same time, we also have looked at how we can be more successful in the small car segment and deliver even more choices for customers in a way that makes business sense.”

Ford’s next-generation Ford Focus will be more spacious and packed with technology that customers want.

Production begins in the second half of 2019, with models coming from the company’s existing Focus plants globally. Most new North American Focus models initially will come from China, with additional variants coming from Europe later.

No U.S. hourly employees will be out of a job tied to the new manufacturing plan for Focus. Production of the current North American Focus at the Michigan Assembly Plant continues through mid-2018. Following that, the plant will be converted to produce the Ranger midsize pickup truck in late 2018 and the Bronco midsize SUV in 2020.

The new North America Focus production plan saves $1 billion in investment costs versus the original plan – $500 million on top of the $500 million savings announced earlier this year by cancelling plans for an all-new manufacturing facility in San Luis Potosi, Mexico, and moving Focus production to Ford’s Hermosillo, Mexico, plant.

“Finding a more cost-effective way to deliver the next Focus program in North America is a better plan, allowing us to redeploy the money we save into areas of growth for the company – especially sport utilities, commercial vehicles, performance vehicles as well as mobility, autonomous vehicles and electrified vehicles,” Hinrichs said.

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