Ford’s Mexican confirmation puts production politics under the spotlight

Just as tempers were settling on Ford's Mexican production plans the strategy has been dragged back into the spotlight.

The OEM has been laying plans to shift most of its small car production out of the US to Mexico, which offers a lower-cost option for the less profitable and less popular models, which are still essential to meeting its CO2 targets. FCA is taking the same approach, turning the US into a hub for pick-ups and SUVs. The signs from Ford were clear. The last UAW contract, signed in November 2015, provided for replacement investment as the Focus and C-Max were to be transferred from Detroit to Mexico. A few months later, Ford announced plans to build a US$1.6bn new small car plant in San Luis Potosi State, Mexico. Production is scheduled to begin there in 2018.