During The Annual Investor Conference this week held by of Ford, the industry made a big but not so surprising announcement of giving up on small cars once again.
The company is moving it’s small cars production out of the US shifting it into Mexico.
According to media, the CEO Mark Fields stated “Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States”.
Crossover SUVs. CEO Sergio Marchionne has argued that a structural change is underway in the US market, making passenger cars a poor business to continue.
Mexico, with its rapidly growing auto industry just across the US border, makes for an appealing solution. Manufacturing capacity there is growing and labor costs are substantially lower than in the Upper Midwest. This has set off warning bells for the United Auto Workers, but their concerns should be placated if Ford and others add capacity – and jobs – on the pickup and SUV lines.