Ford will be shifting its small car manufacturing unit from the US to Mexico, Ford Motor Co Chief Executive Officer Mark Fields said that all of the company's small car production will be departing the US and moving to low-cost Mexico.
Earlier this year Ford stated that it will invest $1.6 billion in Mexico for small car production to begin in 2018. The relocation of production unit was supposed to happen next year before 2018. Fields also mentioned that Ford will shift the majority of small cars production around the world to low cost countries.
The main reason for this change is, US customers have switched to SUVs and pickup trucks rather than traditional hatchbacks and sedans. Fiat Chrysler Automobiles too hinted a similar move earlier.
However according to United Auto Workers President, Dennis Williams, in the future there is always a risk of the rise in the price of gasoline fuel, then customers will once again prefer smaller cars over the bigger SUV's and pickup trucks.