Ford puts brakes on $1.6 billion Mexican plant

Ford Motor Company announced this morning it has abandoned plans to build a $1.6 billion factory in Mexico, revamping an existing plant in Michigan instead. The company will spend $700 million on the Flat Rock facility, adding 700 new jobs. The plant will build new electric vehicles, including a fully electric SUV with a 300-mile range and a gas-electric hybrid version of the F-150 pickup. President-elect Donald Trump had criticized the company over plans to shift production of the compact Focus to Mexico, a move Ford still plans to make. This morning, Trump took to Twitter to threaten General Motors with a “border tax” on cars it imports from Mexico. The company makes most of its Chevrolet Cruze vehicles in Ohio but assembles the hatchback version in Mexico. A United Auto Workers spokesman dismissed Trump’s warning as an attempt to grab headlines. Trump has been critical of U.S. companies that send jobs overseas, a message that resonated with voters in states that have lost factories and mills.

The Associated Press contributed to this report.