Ford cancels plan for $1.6bn factory in Mexico

Ford Motor Co said it will cancel a planned $1.6 billion (€1.5bn) factory in Mexico and invest $700m at a Michigan factory, after President-elect Donald Trump harshly criticised the Mexico investment plan.

The second largest US automaker said that it would build new electric, hybrid and autonomous vehicles at the Flat Rock, Michigan, plant and add 700 jobs.

Ford chief executive Mark Fields yesterday that said the decision to cancel the new Mexico factory was the result of sagging demand for small cars in North America and not because Mr Trump was elected president.