Ford Motor has informed providers it plans to move production of midsize Fusion and Mondeo sedans out of Mexico and Spain in 2020 and transfer it to China, three sources stated on Wednesday.
The automaker informed it will not deliver those automobiles from China to the United States and Europe.
The automaker did not address the future of the plants in Hermosillo, Mexico and Valencia, Spain that presently construct midsize sedans for the North American and European markets.
Ford stated last month it would invest over 750 million euros ($ 887 million) in Valencia to produce a new generation of its Kuga sport utility vehicle.
New Ford documents shared with providers reveal 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 knowledgeable about the company’s plans.
Ford stated “we have no strategies to export the next-generation Fusion/Mondeo from China to North America and Europe. Fusion/Mondeo are a fundamental part of the Ford car and truck lineup. We will have more information to share about the next Fusion/Mondeo at a later date.”
Ford CEO Jim Hackett has taken a series of actions to cut the automaker’s production expenses, and move the company’s item lineup away from sedans toward sport utility and crossover vehicles, particularly in North America.
Fusion sales in the United States dropped 22 percent this year, while Mondeo sales in Europe are dropped 21 percent.
Ford in June stated it would move some production of its Focus small car from Mexico to China and import the vehicles to the United States.
Ford’s newest moves come as U.S. President Donald Trump has stated he wants to substantially revamp or possibly leave the North American Free Trade Agreement (NAFTA) that permits tariff-free deliveries of vehicles to the United States from Mexico.