Ford Motor Company still plans to relocate some production to Mexico despite the election of Donald Trump, who denounced the move and has threatened to impose hefty tariffs on car imports.
"We look forward to working with the new administration. Our plan is to move our Focus down to Mexico to make room for two very exciting products that will be coming down to the Michigan Center," Ford CEO Mark Fields told reporters on Tuesday.
Speaking at the opening of the Los Angeles auto show, Fields said a 35 percent import duty on cars produced in Mexico, which Trump threatened during the campaign, would hurt the US economy.
"A tariff like that would be imposed on the entire auto sector that could have a major impact on the US economy," he said. "I continue to think that the right policies will prevail because we continue to share the same objective which is a healthy and vibrant US economy."
Asked by AFP about the consequences of renegotiating or pulling out of free trade agreements such as NAFTA - something Trump has pledged to do - Fields said Ford remains "a big supporter of free and fair trade" but added, "we'll see how things play out."
Ford in early April unveiled a $1.6 billion investment in a new facility in Mexico, where the workforce is very cheap compared to the United States.
The plant will be operational in 2018. Car companies that move US factories offshore have become a frequent target of politicians and local elected officials, not least because General Motors and Chrysler - although not Ford - were saved from bankruptcy in 2009 with a government bailout.
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