CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive.
Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn.
"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.
The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Shifting their assembly to Mexico can reduce costs to a point. But some of these cars are over-engineered.
For example, Field said the current Ford Focus can be ordered in 300 different configurations of options and colors. Ford wants to reduce that to 30, which will make the production process simpler and less expensive.
But Americans prefer larger vehicles, especially pickups and higher-riding SUVs and crossover vehicles for their personal use.
The future of smaller cars in the U.S. may depend on the ability to electrify their powertrains and introduce them to ride-sharing fleets where they can generate revenue from fares paid by multiple riders.
Along those lines, Fields and other Ford executives Wednesday outlined an aggressive plan to invest $4.5 billion over the next four years. These will include new models in segments such as commercial vehicles, trucks, SUVs and performance vehicles.
Ford also reiterated its commitment to developing an autonomous vehicle by 2021. The company believes that autonomous vehicles could account for up to 20% of vehicle sales by 2030.
Ford continues to present its corporate strategy to more than 100 analyst and investors throughout the day. The meeting comes as the U.S. auto industry's six-year recovery is cooling, while the U.K.'s exit from the European Union has presented a new challenge to Ford's rebound in Europe.
“The Savage 99 Pocket Reference”. All models and variations of 1895’s, 1899’s and 99’s covered. Also dates, checkering, engraving.. Find at www.savagelevers.com
CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive.
Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn.
"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.
The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Shifting their assembly to Mexico can reduce costs to a point. But some of these cars are over-engineered.
For example, Field said the current Ford Focus can be ordered in 300 different configurations of options and colors. Ford wants to reduce that to 30, which will make the production process simpler and less expensive.
But Americans prefer larger vehicles, especially pickups and higher-riding SUVs and crossover vehicles for their personal use.
The future of smaller cars in the U.S. may depend on the ability to electrify their powertrains and introduce them to ride-sharing fleets where they can generate revenue from fares paid by multiple riders.
Along those lines, Fields and other Ford executives Wednesday outlined an aggressive plan to invest $4.5 billion over the next four years. These will include new models in segments such as commercial vehicles, trucks, SUVs and performance vehicles.
Ford also reiterated its commitment to developing an autonomous vehicle by 2021. The company believes that autonomous vehicles could account for up to 20% of vehicle sales by 2030.
Ford continues to present its corporate strategy to more than 100 analyst and investors throughout the day. The meeting comes as the U.S. auto industry's six-year recovery is cooling, while the U.K.'s exit from the European Union has presented a new challenge to Ford's rebound in Europe.
Perhaps "The Donald" can bring back the manufacturing before the wall is built? Along with bringing back Oreo production to the USA. I miss USA made Oreos.
Geno
The desert is a true treasure for him who seeks refuge from men and the evil of men. In it is contentment In it is death and all you seek (Quoted from "The Bleeding of the Stone" Ibrahim Al-Koni)
Perhaps "The Donald" can bring back the manufacturing before the wall is built? Along with bringing back Oreo production to the USA. I miss USA made Oreos.
Geno
WTF?!?!
Oreos are NOT made in America any more? When did this happen?!
Okay, Muslims immigrating I can take. BLM hypocrisy, I can manage. Democratic/Hillary lies, a minor annoyance at most.
But Oreos not made in America?!?!?!
That's the last f*cking straw!! To arms, to arms!! Who do I shoot first?!
Gunnery, gunnery, gunnery. Hit the target, all else is twaddle!
"CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive."
Makes perfect sense to me...Just as long as we add a proportionate tariff to their crap being sold here..
A good principle to guide me through life: “This is all I have come to expect, standard lackluster performance. Trust nothing, believe no one and realize it will only get worse…”
Course, this will lead to fleets of self driving cars - all made in Mexico.
The 21st Century is not turning out like I had hoped.
“The Savage 99 Pocket Reference”. All models and variations of 1895’s, 1899’s and 99’s covered. Also dates, checkering, engraving.. Find at www.savagelevers.com
Perhaps "The Donald" can bring back the manufacturing before the wall is built? Along with bringing back Oreo production to the USA. I miss USA made Oreos.
Geno
WTF?!?!
Oreos are NOT made in America any more? When did this happen?!
Okay, Muslims immigrating I can take. BLM hypocrisy, I can manage. Democratic/Hillary lies, a minor annoyance at most.
But Oreos not made in America?!?!?!
That's the last f*cking straw!! To arms, to arms!! Who do I shoot first?!
The female CEO of Kraft foods broke the Chicago cookie makers union by eliminating their 600 jobs and moving the whole thing to Mexico. She's a ruthless bitch from what I've read.
“In a time of deceit telling the truth is a revolutionary act.” ― George Orwell
It's not over when you lose. It's over when you quit.
The female CEO of Kraft foods broke the Chicago cookie makers union by eliminating their 600 jobs and moving the whole thing to Mexico. She's a ruthless bitch from what I've read.
Something else to blame on Chicago..
“The Savage 99 Pocket Reference”. All models and variations of 1895’s, 1899’s and 99’s covered. Also dates, checkering, engraving.. Find at www.savagelevers.com
My work car, a 1997 Escort Wagon, was made in Mexico. I hope all the cars I will own will be as tough and reliable as it is. Having said that, I wish more manufacturing would stay in the U.S. since we seem to have 94m people who need jobs.
The female CEO of Kraft foods broke the Chicago cookie makers union by eliminating their 600 jobs and moving the whole thing to Mexico. She's a ruthless bitch from what I've read.
Something else to blame on Chicago..
Nope,the unions. All of the recent moves out of the USA were union based companies. You can't pay the overinflated salaries union workers get for not working and producing and at the same time keep a company in business.
if Ford and the other American makers don't get rid of the UAW, they will collapse. The unions, the EPA, OSHA, and taxes are what is driving all manufacturing off shore.
I work in Mexico every other week. My company is a food processor, it is easier for us to produce in the country we are selling in. We are growing/adding inside the US as well as in Europe.
Anyways, drive by the monstrous GM plant last Thursday. Mile and half long or so? Hundreds of GM trucks staged for shipping. Probably 50 buses parked there for transporting workers to/from the plant. I asked the cabbie what the wages were there. He guessed $120/week. That's on par with the other manufacturing in the park our plant is. With Pirelli, vw, and all the other Japanese and German manufacturing plants there. Breakfast buffet at the hotel looks like a tour of the world.
I work in Mexico every other week. My company is a food processor, it is easier for us to produce in the country we are selling in. We are growing/adding inside the US as well as in Europe.
Anyways, drive by the monstrous GM plant last Thursday. Mile and half long or so? Hundreds of GM trucks staged for shipping. Probably 50 buses parked there for transporting workers to/from the plant. I asked the cabbie what the wages were there. He guessed $120/week. That's on par with the other manufacturing in the park our plant is. With Pirelli, vw, and all the other Japanese and German manufacturing plants there. Breakfast buffet at the hotel looks like a tour of the world.
$3/hr vs. $34/hr + benefits.
People can get all pissed off about shipping jobs overseas, but the truth is manufacturing follows labor and energy costs. Once one maker does, the other must follow or lose the competitive balance.
Making jobs in Mexico does keep Mexicans on that side of the border.
Truth is, I'd much rather have these jobs here. Would they be here at $22 per hour instead of $34? I don;'t know, but it is very expensive to move production.
"The Democrat Party looks like Titanic survivors. Partying and celebrating one moment, and huddled in lifeboats freezing the next". Hatari 2017
"Hokey religions and ancient weapons are no match for a good blaster at your side, kid." Han Solo
Always keep in mind that Trump has everything he sells built in the lowest cost country so this trend will not change if Trump were to win. The man is who he is period, history show us that to be true.
I work in Mexico every other week. My company is a food processor, it is easier for us to produce in the country we are selling in. We are growing/adding inside the US as well as in Europe.
Anyways, drive by the monstrous GM plant last Thursday. Mile and half long or so? Hundreds of GM trucks staged for shipping. Probably 50 buses parked there for transporting workers to/from the plant. I asked the cabbie what the wages were there. He guessed $120/week. That's on par with the other manufacturing in the park our plant is. With Pirelli, vw, and all the other Japanese and German manufacturing plants there. Breakfast buffet at the hotel looks like a tour of the world.
$3/hr vs. $34/hr + benefits.
People can get all pissed off about shipping jobs overseas, but the truth is manufacturing follows labor and energy costs. Once one maker does, the other must follow or lose the competitive balance.
Making jobs in Mexico does keep Mexicans on that side of the border.
Truth is, I'd much rather have these jobs here. Would they be here at $22 per hour instead of $34? I don;'t know, but it is very expensive to move production.
To add to that, this is a city/area of 2Million plus residents. Lots of industry (mostly foreign). Industrial parks are top notch, manicured, beautfiul places. Better than most parks I've seen domestically.
The hotel area we stay at is top notch, as are the restaurants around the hotel. The 30 minute ride between the two is total slums.
With our expansion we'd hire 8 workers, and 7 would quit. There is just so much competition there now for workers that they can get choosy in where they work. We have had a plant there for 20+ years. The old plant was very manual process, very simple electronic stuff. The new plant is top notch, high level automation. It takes a completely different level of worker to run that equipment as well as to maintain it. That drives up the wages, which drives up the competition. Vicious circle.
