by Mish
Ford Motor Co. Chief Executive Mark Fields said Wednesday the car maker will shift the production of its small cars from the U.S. to Mexico, a move aimed at “reinventing” Ford’s small vehicle business and cutting costs to help boost profitability.
“Within the next two to three years, a majority of our small vehicles will be built in low-cost areas,” Fields said at the company’s investor day, according to the archived audio provided by FactSet. “And for example, here in North America, we will have migrated all of our small car production to Mexico and out of the U.S.”
In August, Ford Chief Financial Officer Robert Shanks said the company was seeing “sort of [a] car recession,” according to a transcript of a conference call with analysts provided by FactSet.
Don’t worry, its not a car recession. Rather, it’s “sort of a car recession”
— Mike “Mish” Shedlock (@MishGEA) September 14, 2016
New Definition
New Definition (Courtesy of Ford): Reinvention = Moving Production to Mexico
— Mike “Mish” Shedlock (@MishGEA) September 14, 2016
News of “going further” (to increase profits), comes fresh on the heels of news that Ford Warns EBIT Will “Decline In 2017” As Sales Have “Reached A Plateau”.
Is this another one of those permanently high plateau deals?
Regardless, this news plays straight into Trump’s hands. It’ sure to heat up the campaign debate.
Mike “Mish” Shedlock
