GLOBAL ECONOMY

Trump celebrates as Ford decides not to move production of SUV model to Mexico

DAGENHAM, ENGLAND - JANUARY 13:  Cars are prepared for distribution at a Ford factory on January 13, 2015 in Dagenham, England. Originally opened in 1931, the Ford factory has unveiled a state of the art GBP475 million production line that will start manufacturing the new low-emission, Ford diesel engines from this November this will generate more than 300 new jobs, Ford currently employs around 3000 at the plant in Dagenham.  (Photo by Carl Court/Getty Images)

DAGENHAM, ENGLAND - JANUARY 13: Cars are prepared for distribution at a Ford factory on January 13, 2015 in Dagenham, England. Originally opened in 1931, the Ford factory has unveiled a state of the art GBP475 million production line that will start manufacturing the new low-emission, Ford diesel engines from this November this will generate more than 300 new jobs, Ford currently employs around 3000 at the plant in Dagenham. (Photo by Carl Court/Getty Images)  (2015 Getty Images)

President-elect Donald Trump claimed Thursday that he convinced the chairman of Ford Motor Co. not to move an assembly plant from Kentucky to Mexico. But Ford never intended to move the plant, just production of one of the vehicles it makes.

Trump said in a tweet that Bill Ford, the company's executive chairman, telephoned him with the news that a "Lincoln plant" would stay in Louisville. Instead Ford decided to keep production of the Lincoln MKC small SUV at the Louisville Assembly Plant. Ford had previously said it would move production of the MKC out of the plant in order to build more Ford Escapes there.

A factory in Cuautitlan, Mexico, was likely to get the MKC. Under a contract negotiated last year with the United Auto Workers, Ford agreed to invest $700 million in the Louisville plant in return for moving the MKC production. Because Escape production would increase, no Louisville jobs would be lost.

It's possible the decision to keep the MKC in Kentucky was made before the election, because Escape sales have been falling since July and additional production capacity in Louisville may not be needed. Ford spokeswoman Christin Baker said she didn't know when that decision was made or if Trump had any impact on it.

"I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!," Trump said in the tweet claiming credit for Ford's decision.

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Ford Motor Co. and Trump have engaged in a yearlong feud over the automaker's plans to move production south of the border. The company plans to shift small-car production from suburban Detroit to Mexico to improve profitability of the lower-priced cars. CEO Mark Fields said Tuesday that the presidential election didn't change the company's plan.

Trump wants to renegotiate the North American Free Trade Agreement and has called for a 35 percent tariff on goods shipped from Mexico in an effort to preserve U.S. manufacturing jobs.

Ford plans to move production of the Focus and C-Max small cars to Mexico from a plant in Wayne, Michigan. But jobs at the Wayne plant would be preserved because it's getting a new SUV and small pickup truck.

Bill Ford met with Trump during the summer and spoke with him on Thursday, Baker said.

"We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle here in the United States," she said in an e-mail.

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