Ford’s China move signals a big threat to Mexican car making

Ford announced it would move some production of its Focus small car to China instead of Mexico. The scrapping of the Ford plant was a bitter blow, coming after President Trump had blamed the country for hollowing out U.S manufacturing on the campaign trail, and threatened to impose hefty tariffs on cars made in Mexico. The loss of the Focus business is an unwelcome reminder of competition Mexico faces from Asia at a time China’s auto exports and the quality of its cars are rising. “For a long time, the quality of vehicles coming out of China was not to global standards. There was a gap in quality that favored Mexico, but that is closing,” said Philippe Houchois, an analyst covering the auto industry at investment bank Jefferies. “That is probably a threat to Mexico.”