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Ford Motor Co. is moving all of its U.S. small car production to Mexico

Sep 14, 2016

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Ford's small car production is moving to Mexico.

Ford CEO Mark Fields confirmed the move today during an event for investors and Wall Street analysts.

Ford can build the cars for less money by paying lower wages in Mexico.

Matt DeLorenzo, managing editor for news at Kelley Blue Book,  said the move is part of an industry-wide trend.

"Behind it are the rather slim margins on small cars in general," said DeLorenzo.

"I think you'll see any car with a smaller size and a smaller sticker will be built in Mexico. The bigger the car, the more expensive, it'll more likely be built in the U.S. or Canada."

Ford currently makes its Fiesta subcompact in Mexico. But its Focus and C-Max small cars are made in suburban Detroit. 

The company is building a new $1.6 billion assembly plant in San Luis Potosi, Mexico, and will start making small cars there in 2018.

Ford's Michigan Assembly Plant, which currently makes small cars will be getting new products under a contract signed last year with the United Auto Workers. They will likely be larger, more profitable and more popular vehicles.