Ford to shift midsize sedan production out of Mexico: sources

Reuters 

By Paul Lienert

(Reuters) - Motor Co has told suppliers it plans to shift production of midsize Fusion and Mondeo sedans out of Mexico and in 2020 and move it to China, three sources said on Wednesday.

The automaker said it will not ship those cars from to the United States and Europe.

did not address the future of the plants in Hermosillo, Mexico and Valencia, that currently build midsize sedans for the North American and European markets, respectively.

said last month it would invest more than 750 million euros ($887 million) in Valencia to produce a new generation of its Kuga sport utility vehicle.

Recent documents shared with suppliers show the automaker plans to shift some Focus and Mondeo production to China, and no longer list Hermosillo and Valencia as production sites, according to sources familiar with the company's plans.

said in a statement "we have no plans to export the next-generation Fusion/Mondeo from to North America and Europe. Fusion/Mondeo are an important part of the car lineup. We will have more information to share about the next Fusion/Mondeo at a later date."

Chief Executive Officer Jim Hackett has taken a series of steps to cut the automaker's production costs, and shift the company's product lineup away from sedans toward sport utility and crossover vehicles, especially in North America.

Fusion sales in the United States are down 22 percent this year, while Mondeo sales in Europe are down 21 percent.

in June said it would shift some production of its Focus small car from Mexico to and import the vehicles to the United States.

Ford's latest moves come as U.S. President Donald Trump has said he wants to significantly revamp or possibly exit the North American Free Trade Agreement that allows tariff-free shipments of vehicles to the United States from Mexico.

Last week, said it plans to relocate production of a future battery electric vehicle to Cuatitlan, Mexico in 2020 to free up capacity at its Flat Rock, Michigan, plant to build self-driving vehicles in 2021.

(Reporting by Paul Lienert in Detroit; Editing by Andrew Hay and Cynthia Osterman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 14 2017. 03:32 IST