Ford Motor Co. CEO Mark Fields confirmed Wednesday the Dearborn automaker plans to move all of its U.S. small car production to Mexico.
DETROIT - Ford Motor Co. CEO Mark Fields confirmed Wednesday the Dearborn automaker plans to move all of its U.S. small-car production to Mexico.
Speaking during an investor event, Fields said the shift will occur over the next two to three years.
The move was widely expected, as automakers head south of the border to capitalize on cheaper labor for production of small cars, which have not been as profitable as trucks and SUVs.
Ford announced in April it is investing $1.6 billion in a new small car plant in San Luis Potosi, Mexico. It's building the facility this summer, and small cars are expected to be rolling off assembly lines there by 2018.
Ford also confirmed last year it plans to move production of the C-Max and Focus models outside the U.S., though it hasn't named a specific location. At the same time, the company is expected to build a Ranger mid-size pickup at Michigan Assembly beginning in 2018, and could also revive the Bronco SUV there.
Ford currently builds its Fiesta car in Mexico.
Mexico is Ford's fourth largest country for manufacturing, after the U.S., China and Germany. Vehicles produced by Ford in Mexico are sold in the U.S., Canada, several South American countries and South Korea.
The company has had operations in Mexico for 91 years.