2019 will be a year of some significant changes for Ford Motors. This will be the year starting when some of the brand's vehicles will be exported to the U.S. from China. The announcement was made on Tuesday by the company's spokesperson. Some massive costs savings will accrue to the company as a result of this move and this is the main reason behind the decision.
Ford Focus to be shifted
The brand has announced that its Ford Focus line of small cars is the one that it intends to move to China. The production of this small car is already ongoing in this Asian economy where it is quite a popular automobile. One of the biggest factors that have pressured the company into this decision may be the dwindling small car sales figures within the U.S. in recent times. Many auto makers are laying off employees to cope with the reducing demand and Ford has been impacted by the economic situation just as badly.
Moving the Ford Focus production to save the company about a billion dollars, which is a good reason for the decision. The company had plans to manufacture the Focus line in Mexico but these plans now stand canceled as the move to China is far more financially beneficial.
Employees in Ford U.S. need not fear lay- offs
However, in a bid to reassure their employees in the U.S. manufacturing plants, the company's officials have also issued a statement saying that the move is not expected to affect any jobs here in the country. It is believed that there are plans to convert the plant in Detroit that now manufactures the Ford Focus line into one that turns out the Ranger pickup and Bronco SUV versions from this brand. This will protect the jobs at this plant without compromising on the cost savings that they will achieve with the China move.
Additional investment into the Kentucky plant will also serve to safeguard the jobs here. The company has announced plans to put in $900 million here. The vehicles that will be made here include the Ford Expedition aluminum sided version and Lincoln Navigator SUVs. About 1000 jobs at this plant will be protected owing to the initiative here. Given that car sales for Ford have been dipping in the recent times, affecting their bottom lines, it is hoped that these strategies will help the car maker regain its footing quickly.