Jump to content
William Maley

Ford News: Ford Changes Plans, Moves Electric Crossover from Flat Rock to Mexico

Recommended Posts

Earlier this year, we reported that Ford would be investing $700 million into their Flat Rock, MI plant for two new models - an electric crossover in 2020 and an autonomous vehicle following a year later. Those plans have changed as Ford will move production of the electric crossover to Cuautitlan, Mexico.

This information comes from an internal Ford memo obtained by Automotive News last night. Flat Rock will become an “AV center of excellence”. AV, in this case, being autonomous vehicles.

“This allows us to bring this exciting new vehicle to global customers in a more effective way to support our overreaching business goals,” the memo says.

Ford spokesman Alan Hall confirmed the move to both Automotive News and The Detroit News last night. Hall said the company sees "a bigger opportunity" for their upcoming autonomous vehicle. Ford will be investing an additional $200 million to Flat Rock over the next few years in addition to the already announced $700 million.

Part of the reason for Ford moving the production of the electric crossover down to Mexico is lower production costs, allowing the company to make a little more profit. Electric vehicles have low-margins when it comes to making money.

Source: Automotive News (Subscription Required), The Detroit News


View full article

Share this post


Link to post
Share on other sites

Totally understand this move and is good for Ford and everyone. Should help the cost part of the EV SUV.

  • Thanks 1

Share this post


Link to post
Share on other sites

Just not sure how much more profit it will really give them though.

 

With the issues Ford is dealing with at the moment, my focus would be on the current product....I have quite a few friends who have issues with their current stuff...and not good.

Share this post


Link to post
Share on other sites
6 hours ago, daves87rs said:

Just not sure how much more profit it will really give them though.

 

With the issues Ford is dealing with at the moment, my focus would be on the current product....I have quite a few friends who have issues with their current stuff...and not good.

I understand the current issue on their products, but if they can get the labor cost lower, that will help with the initial up front loss on the EVs till they hit the cusp of flipping over to be profitable. 

  • Haha 1
  • Confused 1

Share this post


Link to post
Share on other sites
On 12/8/2017 at 1:34 AM, daves87rs said:

Just not sure how much more profit it will really give them though.

 

With the issues Ford is dealing with at the moment, my focus would be on the current product....I have quite a few friends who have issues with their current stuff...and not good.

Quality control does seem to be lacking.

On 12/8/2017 at 8:02 AM, dfelt said:

I understand the current issue on their products, but if they can get the labor cost lower, that will help with the initial up front loss on the EVs till they hit the cusp of flipping over to be profitable. 

A race to the bottom helps no one.

Share this post


Link to post
Share on other sites

Pretty soon they will build F150’s in Mexico so they can ring out an extra $500 in profit per truck.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By William Maley
      Ford isn't shy about making its ambitious plans on electrifying their lineup known to the world. But the automaker had decided to raise the stakes with plans to build an all-electric F-150.
      “We’re going to be electrifying the F-Series — battery electric and hybrid,” said Jim Farley, Ford president of global markets at the Deutsche Bank Global Automotive Conference.
      Car and Driver was able to get a Ford spokesperson to confirm Farley's comment.
      Farley didn't provide any details or a possible timeline as to when the F-150 EV will debut. Car and Driver is speculating that we could see this model with the next-generation F-150, possibly expected to appear sometime early in the next decade. It could be facing some tough in the form of the Rivian R1T that was revealed at the LA Auto Show in November. It promises a max range of 400 miles and max towing capacity of 11,000. The company is planning to begin production in late 2020, but that remains to be seen.
      Source: Detroit Free Press, Car and Driver

      View full article
    • By William Maley
      Ford isn't shy about making its ambitious plans on electrifying their lineup known to the world. But the automaker had decided to raise the stakes with plans to build an all-electric F-150.
      “We’re going to be electrifying the F-Series — battery electric and hybrid,” said Jim Farley, Ford president of global markets at the Deutsche Bank Global Automotive Conference.
      Car and Driver was able to get a Ford spokesperson to confirm Farley's comment.
      Farley didn't provide any details or a possible timeline as to when the F-150 EV will debut. Car and Driver is speculating that we could see this model with the next-generation F-150, possibly expected to appear sometime early in the next decade. It could be facing some tough in the form of the Rivian R1T that was revealed at the LA Auto Show in November. It promises a max range of 400 miles and max towing capacity of 11,000. The company is planning to begin production in late 2020, but that remains to be seen.
      Source: Detroit Free Press, Car and Driver
    • By William Maley
      The recently announced alliance between Ford and Volkswagen will not bring any benefits to North America at the beginning. Both companies said that the partnership will focus on Africa, Europe, and South America beginning with commercial vans and the next-generation Ranger/Amarok pickup. Down the road, both Ford and Volkswagen said there could be a potential product for the U.S.
      While Ford is keeping quiet on what that product could be, Volkswagen CEO Herbert Diess said that a commercial vehicle being jointly developed by the two could come over.
      "Some of those, yes, but it's not yet decided which vehicle comes to America," said Diess.
      Volkswagen's commercial vehicle lineup is extensive with vans ranging in size from the compact Caddy (Transit Connect-sized) to the large Crafter (about Transit-sized). We would guess something like the Caddy and possibly the Transporter coming to the U.S. in the next few years. Of course, there is talk about a pickup truck - something dealers have been asking for some time. While there is a very slim chance of the Amarok coming, the Atlas Tanoak concept shown at New York last year seems to have a better chance.
      Source: Automotive News (Subscription Required), 2

      View full article
    • By William Maley
      The recently announced alliance between Ford and Volkswagen will not bring any benefits to North America at the beginning. Both companies said that the partnership will focus on Africa, Europe, and South America beginning with commercial vans and the next-generation Ranger/Amarok pickup. Down the road, both Ford and Volkswagen said there could be a potential product for the U.S.
      While Ford is keeping quiet on what that product could be, Volkswagen CEO Herbert Diess said that a commercial vehicle being jointly developed by the two could come over.
      "Some of those, yes, but it's not yet decided which vehicle comes to America," said Diess.
      Volkswagen's commercial vehicle lineup is extensive with vans ranging in size from the compact Caddy (Transit Connect-sized) to the large Crafter (about Transit-sized). We would guess something like the Caddy and possibly the Transporter coming to the U.S. in the next few years. Of course, there is talk about a pickup truck - something dealers have been asking for some time. While there is a very slim chance of the Amarok coming, the Atlas Tanoak concept shown at New York last year seems to have a better chance.
      Source: Automotive News (Subscription Required), 2
    • By William Maley
      It is official. Ford and Volkswagen announced this morning a new global alliance that will focus on developing "commercial vans and medium-sized pickups." Ford will handle the development of next-generation mid-size pickups (Ranger and Amarok), along with developing and building larger vans for the European market. Volkswagen for its part will work on a small city van.
      “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness,” said Volkswagen CEO Herbert Diess.
      “Over time, this alliance will help both companies create value and meet the needs of our customers and society. It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility,” added Ford CEO Jim Hackett.
      The two also announced plans to explore "autonomous vehicles, mobility services and electric vehicles," along with adding new vehicle programs.
      Source: Ford, Volkswagen


      Volkswagen AG And Ford Motor Company Launch Global Alliance
      Alliance leverages the two global automakers’ strengths to better compete, innovate and serve customers Alliance does not involve cross-ownership between the two companies Companies to first deliver medium pickup trucks for global customers, aiming to start in 2022, and intend to follow with commercial vans in Europe Van and pickup agreements are targeted to deliver scale and efficiencies for each company starting in 2023 Volkswagen and Ford also are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services DETROIT, Jan. 15, 2019 – Volkswagen AG and Ford Motor Company today announced the first formal agreements in a broad alliance that positions the companies to boost competitiveness and better serve customers in an era of rapid change in the industry.
      Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett confirmed that the companies intend to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022. The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies.
      The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results, starting in 2023.
      In addition, Volkswagen and Ford have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities. Both companies also said they were open to considering additional vehicle programs in the future. The teams will continue working through details in the coming months.
      “Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Hackett said. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.”
      Diess added: “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.” 
      The alliance, which does not entail cross-ownership between the two companies, will be governed by a joint committee. This committee will be led by Hackett and Diess and will include senior executives from both companies.
      Commercial van and pickup collaboration
      Ford and Volkswagen both have strong commercial van and pickup businesses around the globe, with popular nameplates such as the Ford Transit family and Ranger as well as the Volkswagen Transporter, Caddy and Amarok.
      The companies’ collective light commercial vehicle volumes from 2018 totaled approximately 1.2 million units globally, which could represent the industry’s highest-volume collaboration as production scales.
      Demand for both medium pickups and commercial vans is expected to grow globally in the next five years. The alliance will enable the companies to share development costs, leverage their respective manufacturing capacity, boost the capability and competitiveness of their vehicles and deliver cost efficiencies, while maintaining distinct brand characteristics.
      Through the alliance, Ford will engineer and build medium-sized pickups for both companies which are expected to go to market as early as 2022. For both parties, Ford intends to engineer and build larger commercial vans for European customers, and Volkswagen intends to develop and build a city van.

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×