Ford to build the Focus in China instead of Hermosillo
Ford Motor Company today announced manufacturing of the 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.
Most new North American Focus models initially will come from China, with additional variants coming from Europe later.
“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,” said the company in a press release.
According to Ford, the new North America Focus production plan saves US$ 1 billion in investment costs versus the original plan – US$ 500 million on top of the US$ 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 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,” said Joe Hinrichs, Ford executive vice president and president, Global Operations.
The company’s Mexican subsidiary said it expects no immediate impact on employment levels due to the carmaker’s announcement. “We expect no immediate impact on our levels of employment as a result of this decision,” Ford de Mexico said in a statement after being asked by Reuters how the announcement would affect its plant in Hermosillo in northern Mexico.
“We will continue producing the Fusion and the Lincoln MKZ and its hybrid versions in Hermosillo,” it added.
Ford added that its business in Mexico would continue being a “major and critical” part of its North American operations.