Ford Cancels Plans for Factory in Mexico

The car company made the announcement that it intends to invest $700 million to increase production at a Michigan plant and add 700 American jobs.
2:28 | 01/04/17

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Transcript for Ford Cancels Plans for Factory in Mexico
The president-elect not only sending that message to members of congress today, but he sent it to another American auto maker, to GM, and he warned about tariffs. It came on the same day Ford revealed it will not form a factory in Mexico. Employees applaud. We wonder, is it because of the president-elect or are automakers feeling the heat? ABC's Rebecca Jarvis takes those questions to the CEO of Ford. Reporter: Trump taking on the automakers. The president-elect calling out general motors on Twitter, claiming the company makes its Chevy Cruze in Mexico and semis it here. Make in usa or pay border tax. The company pushing back that all Chevrolet Cruze sedans are built in GM's assembly plant in Ohio. He said that hatchbacks are sold here. Team trump making a positive call with Ford about its future after challenging them on the campaign trail. Just two weeks ago announcing their small cars are going to be produced and made entirely in Mexico. Reporter: Today, we vealing it is scrapping plans to build that plant in Mexico. But not just because of trump says the CEO. We have seen a dramatic decline in demand for small vehicles in North America. Reporter: They are announcing they will create 700 new jobs here in the U.S. For electric and self-driving cars. Is this because of trump? We didn't have direct SNO negotiations. Reporter: Did you feel pressure from him? There there are a lot of different factors and one is it will be a positive business environment under president-elect trump. A lot of people celebrating those 700 new jobs. We want to ask about small car production in Mexico. Ford will continue doing that and add more jobs. Ford will be moving production of the new Ford focus to its Mexico plant, a preexisting plant, and it will not cost any jobs here in the United States. Important questions for the CEO. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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