#FlatRockAssemblyPlant

In public, automakers talk a great game about the industry’s electric future. The money poured into the development of electric vehicles is necessary, they say, in order to stay competitive in a changing marketplace. It wasn’t long ago that Ford claimed 100 miles of range was just fine for an EV model; not long after, following the introduction of the 238-mile Chevrolet Bolt, it announced the development of an EV crossover with far greater (300-mile) range.

Whether or not electric power becomes the dominant propulsion source in the United States remains to be seen, but no automaker can be seen resting on its laurels, shunning the most hyped technology. That doesn’t mean a company can’t be realistic about it, though.

Ford’s electric crossover, expected to roll out of Michigan’s Flat Rock assembly plant in 2020, will instead roll out out of a factory in a much warmer (and cheaper) locale.

Ford Motor Company CEO Mark Fields didn’t completely walk back the company’s long-range production plans today, but the automaker pull a hard U-turn on one goal.

In a speech at the automaker’s Flat Rock, Michigan assembly plant this morning, Fields said he was “encouraged” by President-elect Donald Trump’s “pro-growth policies.” Because of this, the Blue Oval’s planned $1.6 billion small car plant in Mexico is now off the table. Instead, the automaker will expand and modernize Flat Rock as it brings a slew of promised hybrid and electric vehicles to production.

Update: Added official statement from Ford.

Ford Motor Company is briefly shutting down production of the Ford Mustang at the car’s Flat Rock, Michigan, factory in a quest to avoid ballooning inventory ahead of the winter months, Bloomberg reports.

Year-over-year, U.S. sales of the Ford Mustang tumbled 32 percent in September 2016 in response to rapidly elevating incentives on the Chevrolet Camaro. As the Camaro outsold the Mustang for the first time since October 2014, Mustang sales fell to a 23-month low, causing inventory at the end of September 2016 to rise to an 89-day supply, up from 71 days of supply one month earlier.

The temporary idling at Ford’s Flat Rock facility will allow Ford to bring U.S. Mustang inventory down to more appropriate levels. 60 days of inventory is considered normal.

Ford will build its next-generation Lincoln Continental at its Flat Rock, Michigan plant, which also produces the Ford Fusion and Mustang, the Wall Street Journal is reporting.

The announcement was made Wednesday by Ford’s Executive Vice President John Fleming at an event in Dearborn, Michigan.

The announcement comes ahead of negotiations with the United Auto Workers, which represents roughly 50,700 Ford employees.

In August, Ford Motor Company started production of their mid-sized Fusion sedan at its Flat Rock, Michigan assembly plant, supplementing production in Mexico to keep up with demand.

For the first time, yesterday Ford started assembling the midsize Fusion sedan in the United States as production began at their Flat Rock, Michigan facility. That move will add about 100,000 units a year to Fusion production, which was formerly only done in Hermosillo, Mexico. Ford is looking at options for expanding American capacity even more, should demand grow, and a Ford executive says that the Flat Rock plant could produce yet another model in addition to the Mustangs and Fusions that are currently assembled there.

“We certainly have the flexibility for the future to do more,” Ford president of the Americas, Joe Hinrichs told Reuters. “We’re trying to get our capacity set up to meet demand. With the growing demand for our trucks, growing demand for Fusion, other product lines, that’s what we’re focused on.”

After adding 600,000 units to its North American capacity within the past two years, Ford is trying to find ways to increase output of the Escape crossover and midsize Fusion, both of which currently have about 40 days supply. The Fusion is particularly in short supply on the east and west coasts, a good sign for any domestic automaker these days. A 60 day supply of cars in inventory is generally considered normal for the U.S. auto industry. Automotive News is reporting that at the Center for Automotive Research’s Management Briefing Seminars, held in Traverse City, Michigan, Ford VP for North America manufacturing, Jim Tetreault, said, “We’re still looking at how we get more out of every plant, and that’ll be a focus for as long as the demand is as strong as it is.”