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At present, Ford is building its compact car in Michigan, China and parts of Europe. Recent press release by the auto manufacturing company clearly stated that they intend to move the production of Ford Focus to China. Last year, the company showed inclination on shifting Focus production to a plant in Mexico.
The plant was under construction and everything was going well according to the plan until newly elected U.S. president started a bitter criticism of the company. He argued that the company is providing Mexicans job opportunities rather than preferring Americans. The sole reason behind investing in a plant in Mexico was its low labour cost. But in January, the company had to back down from their decision due to staunch opposition by the president.
According to industry analysts, most car companies are moving the production of small, less profitable cars to nations where wages are low. Their strategy is to keep the SUV models in the United States.
By the year 2019, the auto company will start exporting vehicles from China to the United States. This has never happened for New Ford before so people are keen to see how well will the operations deliver.
Ford resources also claim that this move has saved them $1 billion. Along with this, Ford intends to make a huge investment of $900 million at the Kentucky factory. This is a great initiative and it will open doors of opportunity for new candidates offering 1000+ job openings.
During the past two years, a decrease in the interest of people towards cars is witnessed. Rather market of SUVs and trucks has increased rapidly because cheap petrol has provoked buyers to look for less fuel efficient choices.
By analysing the data from last year and its comparison with figures of this year, an 11 percent decline in the sale of cars were seen. The data was collected for first five months of 2016 and 2017. The case of Ford Focus is no different.
The decreasing market trend had a negative impact of Focus Car sales as well. Its sales are said to drop by 20 percent which is a serious jot to the company. Ford believes in providing options to its customers by different levels of cars to meet everyone’s needs. New contracts and investment are signs that the brand will revive and gain its lost position in the market.
The president of U.S, Donald Trump has almost threatened big names in the auto industry to keep their business and job opportunities to America. He is strictly against expanding production in Mexico.
He further announced increased taxes and duties on Mexican assembled Ford cars. Looking at the severity of the situation, the officials of Ford had to take a giant leap backwards and change their plans. After which the president thanked Ford in a tweet for choosing America over Mexico.
