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William Maley

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

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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


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

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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.

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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. 

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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.

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

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