Ford to move production, possibly to Mexico, as UAW talks commence

07/24/2015

As the United Auto Workers commence talks with Ford Motor Co. (Dearborn, MI) this week, Ford one-upped the union by announcing that it plans to shift some work abroad. Ford announced last Friday that the company will end U.S. production of the Ford Focus and C-Max vehicles in 2018, possibly near-shoring that work to Mexico where the company has numerous plants already.

Both vehicles have lower profit margins than Ford's top-selling vehicles, such as the F-150 pick-up trucks and the Mustang, both of which were top sellers as reported by the company in its June sales report. "Strong retail momentum continues building for our newest vehicles—including F-150, Mustang, Edge and now Explorer," said Mark LaNeve, Vice President, U.S. Marketing, Sales and Service. "The Ford brand's average transaction prices have increased $2,700 versus a year ago—more than triple the industry average—while our incentives are down, showing how much customers value our investment in new vehicles with the latest technologies."

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