Ford is planning to produce an upcoming all-electric SUV in Mexico rather than Michigan.
According to a Bloomberg report, Ford wants to shift production to Mexico due to cheaper labor costs, which helps build the business case for the new all-electric model. Sending production of the unnamed SUV to Mexico will also boost planned output of self-driving vehicles at the company’s factory in Flat Rock, Michigan. The American automaker is is increasing its investment by $200 million and adding 150 more jobs to the Michigan plant as part of the shift.
The self-driving vehicle that is expected to be built in Michigan is set to debut in 2021.
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As for the electric SUV that will be built in Mexico, it is said to have a 300-mile range on a single charge and production will start in 2020. It is one of 13 electric or hybrid models Ford plans on introducing in the coming years as part of its $4.5-billion investment. There’s even a hybrid version of the F-150 in the works.
In the interview, Ford’s executive vice president of global markets, Jim Farley, emphasized Ford’s “growing ambitions in autonomous vehicles really means we don’t have room” for the EV in Michigan. As a result, the automaker had to find a different location for production.