Ford Assigns Production of New Electric SUV to Mexico

Ford Motor Co. has decided to build an upcoming electric crossover vehicle in Mexico instead of Michigan, according to an internal memo cited by Automotive News.

The move assigns the model, which had been slated for Ford’s factory in Flat Rock, Mich., to the company’s manufacturing complex in Cuautitlan. The SUV is expected to go into production in the summer of 2020.

The memo suggests the EV, which is intended to be sold worldwide, will be more cost competitive if it’s built in Mexico.

Ford announced in January it was investing $700 million at the Michigan facility to add the new crossover along with a fully autonomous, hybrid-powered shuttle due in 2021. The driverless vehicle, which reportedly is being designed without a steering wheel or foot pedals, is intended for commercial ride-hailing services.

The memo says relocating the EV program also will help Ford turn the Flat Rock plant into a “center of excellence” for higher-margin autonomous vehicles, according to AN. The facility will continue to build the Ford Mustang sport coupe and Lincoln Continental luxury sedan.