Ford confirms small car production moving from US to Mexico

FILE - In this Thursday, June 5, 2014, file photo, clouds are reflected in the Ford sign at a dealership in Wexford, Pa.  (AP Photo/Keith Srakocic, File)
FILE - In this Thursday, June 5, 2014, file photo, clouds are reflected in the Ford sign at a dealership in Wexford, Pa. (AP Photo/Keith Srakocic, File)

DETROIT (AP) – Ford Motor Co. says it’s moving all of its U.S. small car production to Mexico.

Ford CEO Mark Fields confirmed the long-expected move Wednesday during an event for investors and Wall Street analysts.

Ford currently makes its Fiesta subcompact in Mexico, but its Focus and C-Max small cars are made in suburban Detroit. Making them in Mexico would boost company profits because of low wages there.

The company is building a new $1.6 billion assembly plant in San Luis Potosi, Mexico. It will make small cars there starting in 2018.

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

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