Ford Motor Company (NYSE:F) is planning to move production of the Ford Focus to China.
Ford Motor Company says that the shift will have it making its Ford Focus in China starting in the second half of 2019. The company was previously planning to move production of the Focus to Mexico.
Ford Motor Company notes that the change in plans will allow it to save an additional $500 million by not moving production of the Ford Focus to Mexico. The Focus will be made at already-existing Focus plants in China, with some other variants of the car coming from Europe.
Ford Motor Company is also pointing out that there will be no loss of jobs at its Michigan Assembly Plant in connection to the Ford Focus production moving to China. This is due to plans to convert the plant for production of the Ranger pickup truck and Bronco SUV in 2018 and 2020.
“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,” Joe Hinrichs, Ford Motor Company’s Executive Vice President and President of Global Operations, said in a statement.
Ford Motor Company also says that it is investing $900 million into its Kentucky Truck Plant. This investment will allow it to upgrade the plant and prepare it for production of its new Ford Expedition and Lincoln Navigator.
F stock was down slightly as of Wednesday morning and is down 8% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
