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Ford cancels new $1.6B plant in Mexico; will invest $700M in Michigan operations

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FLAT ROCK, Mich. — Ford has canceled a plan for a new $1.6 billion plant in Mexico, and will instead invest $700 million in its plant in Michigan, according to multiple reports.

Ford CEO Mark Fields told CNN that the change in plans is a “vote of confidence” in President-elect Donald Trump and his pledge to create a pro-business environment, according to a report from The Hill. Yet Fields emphasized he did not cut a direct deal with Trump.

“We didn’t cut a deal with Trump,” he said. “We did it for our business.”

Despite a walk-back of the $1.6 billion investment, Ford will move forward and build the Ford Focus at an existing plant in Mexico and also invest $700 million in its plant in Flat Rock, Michigan, according to The Hill. That investment will go toward an effort to produce more electric and self-driving cars.

Trump previously criticized Ford while on the campaign trail for the proposition of moving production to Mexico and the proposed $1.6 billion investment that would have taken place.

Earlier Tuesday, Trump targeted another car company, General Motors, tweeting that he would slap them with a heavy tax if they took their jobs from the U.S. to Mexico, specifically jobs that involve building the Chevrolet Cruze.

But according to an Associated Press report, GM makes the vast majority of their Chevy Cruze models in Lordstown, Ohio.

GM reportedly saw the tweet and is formulating a response, according to the Associated Press.