Ford Motors cancels $1.6bn Mexico plant

Ford Motors cancels $1.6bn Mexico plant

Ford has said it will cancel a $1.6bn (£1.3bn) plant it planned to build in Mexico and instead extend operations at its factory in Michigan.

The US car giant will spend $700m on expanding the plant at Flat Rock.

Ford boss Mark Fields said the decision was partly due to falling sales of small cars and partly a “vote of confidence” in Donald Trump’s policies.

The President-elect ( Mr Trump ) has criticised both Ford and its rival General Motors over production of models in Mexico.