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Ford Motor Co. is planning to move its production of Electric SUVs from Michigan to Mexico, according to a recent report from Bloomberg.
The reason for the move is directly related to labor costs, and will be much lower for Ford to produce the cars in Mexico. The small, electric SUV is expected to be costly for consumers, so the move to Mexico would help lower the cost of the vehicle when it’s sold in the United States.
If the production is sent to Mexico, it would allow Ford to produce its self-driving car sooner. Jim Farley, Ford’s executive vice president of global markets, said he has ambitious goals regarding electric vehicles.
“Our ambition for electrification is not modest,” Farley said. “We’re going for it. We think electrification is a significant shift in propulsion for our industry.”
One challenge that could stand in the way of Ford moving production to Mexico is President Donald Trump, who has been openly critical of Ford moving any kind of business to Mexico.
But if the production plans work out for Ford, it will allow them to focus more on driverless vehicles while lowering costs for the electric SUV. The plan is in place for now, but the plan could change if it’s met with a hefty amount of criticism.