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Tuesday 03 January 2017 4:38 pm

They’ve only Donald done it: Ford bins $1.6bn Mexican factory in favour of smaller US investment

By: Oliver Gill

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Ford has binned plans to build a $1.6bn (£1.3bn) car plant in Mexico, choosing a $700m investment in Michigan instead.

Chief exec Mark Fields defended the u-turn, saying far from pandering to President-elect Donald Trump's protectionist desires the decision was a "vote of confidence" in the pro-business environment the entrepreneur is creating. 

"We didn't cut a deal with Trump. We did it for our business," Fields told CNN.

Read more: Ford's bringing self-driving cars to Europe's roads next year

The money pumped into Michigan will go into Ford's Flat Rock plant and create 700 new jobs.

The factory will focus on electric and self-driving car production, two divisions Ford believes will be outselling petrol and diesel powered cars within the next decade and a half.

The automotive giant's planned investment in Mexico attracted repeated criticism from the Trump campaign in the run-up to the US presidential election. Trump said he would hike tariffs on any Ford vehicles made south of the border and sold back home.

Read more: Brexit vote cost General Motors $100m in the last quarter

The news comes on the same day the President-elect slammed Ford's rival General Motors for similar plans – to make some of its Chevrolet Cruze models in Mexico.

General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!

— Donald J. Trump (@realDonaldTrump) January 3, 2017

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