FLAT ROCK, Mich./WASHINGTON - Ford engine Co. Stated Tuesday it will certainly cancel a planned $1.6 billion factory in Mexico and will invest $700 million at a Michigan factory, ~ it had come under harsh criticism from President-elect Donald Trump because that it...

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Ford Chief executive, management Mark fields said the decision come cancel the brand-new plant in Mexico was in component related come the have to "fully make use of capacity in ~ existing facilities" amid declining sales of tiny and tool sized dare such as the Focus and also Fusion.

Fields likewise endorsed "pro growth" tax and regulatory policies advocated by Trump and also the Republican led Congress.

Trump repeatedly said throughout the election project that if elected he would not enable Ford to open the brand-new plant in Mexico, which he referred to as an "absolute disgrace" and would slap hefty tariffs count on imported Ford vehicles.

Ford executive chairman bill Ford Jr. Said reporters the he spoke v Trump to inform him the the decision. A Ford source said the decision was affected by Trump's policy objectives such as lowering taxes and regulations yet there to be no negotiations in between Ford and also the Republican end the decision to cancel the Mexico plant or invest in Michigan.

Also ~ above Tuesday, Trump endangered to impose a "big border tax" on general Motors Co. For making few of its Chevrolet Cruze car in Mexico. The brand-new York businessman take away office on Jan. 20.

Fields claimed Ford will develop a battery electrical SUV v a 300-mile driving range at the Michigan plant by 2020, and will launch manufacturing there by 2021 that a totally autonomous car without a steering wheel or a brake pedal for use in ride services fleets. Ford likewise plans new hybrid version of its F-150 pickup truck, Mustang and also police vehicles by 2020.

Ford will include 700 tasks at the flat Rock plant, fields said, to cheers from union workers gathered in ~ the factory for the announcement.

Ford in April announced it would certainly invest $1.6 exchange rate in the brand-new plant in san Luis Potosi, Mexico come build tiny cars. The agency said it will change production from Michigan that its focus to an existing plant in Hermosillo, Mexico. Trump had urged Ford to cancel the planned mexico plant.

When trump announced his campaign in June, 2015, he said Ford would cancel its planned Mexico investments. "They’ll say,‘Mr. President we’ve made decision to move the plant earlier to the United states - we’re no going to build it in Mexico.’ that’s it. They have actually no choice," trump said.

Trump tweeted a link on Tuesday come a story around the decision.

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Ford said it will include two new unnamed commodities at that is Michigan Assembly plant in Wayne, Michigan, where the focus is manufactured today.