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 / Updated By Paul A. Eisenstein 
 
 Ford Motor Co. announced Tuesday it has scrubbed plans to build a new $1.6 billion assembly plant in Mexico, a project that had been spotlighted by then-candidate Donald Trump, especially after Ford said it would move small car production from the U.S. into that new factory. 
 
 But while the move is being hailed by some as a victory for the president-elect, a closer look at the announcement, made by senior Ford executives at a suburban Detroit assembly plant, did not actually reverse the central decision the automaker announced last April. 
 
 Small car production, such as the compact Focus model, will still move to Mexico, just into an existing Ford plant in Hermosillo. 
 
 And while Ford will use some of the savings from the planned Mexican plant to expand its factory in Flat Rock, Michigan, that project appears likely to have happened anyway. The maker’s new body shop and expanded assembly line will handle production of two new battery-based models that were not expected to be built in Mexico, anyway. 
 
 “We reached the point where we believed we could get…capital savings” by abandoning the new plant, Joe Hinrichs, Ford’s President of the Americas, told NBCNews in an exclusive interview. 
 
 One of the key reasons was an update of sales projections for the Ford Focus. Demand for passenger cars – smaller models, in particular -- has been falling rapidly as American motorists shift to SUVs, crossovers and light trucks. That was a key reason Ford wanted to move the Focus and C-Max “people-mover” out of the Wayne Assembly Plant to Mexico in the first place. The factory is being converted to built higher-volume, and notably higher-profit, light trucks. 
 
 According to Hinrichs, the revised forecast didn’t justify building an entirely new plant. Instead, he explained, Ford now can make room for lower volume production at its existing factory in Hermosillo. In the process, that frees up money to update a second factory in suburban Detroit. Even then, the “net savings,” the executive explained, come to around $500 million. 
 
 Ford will also get improved economies of scale for the Focus by building it in Hermosillo, since the plant will now operate near capacity. And, it will save substantially on labor costs compared to what it paid union workers in Michigan to produce the Focus. 
 
 Ford Focus vehicles are assembled at the Michigan Assembly Plant in Wayne, Michigan on March 17, 2011. Paul Sancya / AP 
 
 “There’s more to manufacturer than labor costs,” Hinrichs noted. Logistics are critical, as is the fact that Mexico has more free trade agreements in place than any other country in the world but for Israel. That means fewer tariffs when exporting the Focus, further improving the business case for keeping it in Mexico. 
 
 Meanwhile, some of the savings on the abandoned Mexican plant will help Ford not just justify upgrading its plant in Flat Rock, but, in turn, help make a business case for adding two new electrified models that will be produced in the factory. That includes an all-new pure battery-electric vehicles expected to have a range of “at least” 300 miles. The other product will be a hybrid-powered model due out in 2020 that would be Ford’s first model to allow fully autonomous driving. 
 
 The Tuesday announcement is expected to be promoted by the incoming Trump Administration as an indication of how its hardball stance on trade with Mexico is paying off – even if Ford will continue with its plan to move small car production out of the U.S. At the very least, the shift in plans will create about 700 new jobs in suburban Detroit. 
 
 Whether that will be enough to bring a simmering feud between the two sides to an end is uncertain. After candidate Trump started criticizing Ford, the maker’s Chairman Bill Ford met with the business-cum-politician but failed to get Trump to stop criticizing Ford. 
 
 Shortly after the November election, during a keynote speech at the Los Angeles Auto Show, Ford CEO Mark Fields went public with the dispute, arguing that the idea of trade barriers, especially steep tariffs, would be harmful to U.S. consumers and the overall economy. 
 
 On Tuesday, Chairman Ford -- the great-grandson of the automaker’s founder – made a private call to advise the president-elect of the news. 
 
 Hinrichs told NBCNews that Trump had not been in the loop as the decision was being made to abandon the Mexican plant. There appears to be no direct quid-pro-quo, though Ford CEO Fields was effusive in his praise of the president-elect on Tuesday, suggesting he had “confidence” in Trump’s “pro-growth policies.” 
 
 That may help Ford to step out of the spotlight. Though the incoming president has already turned his attention towards Ford’s cross-town rival General Motors. 
 
 “Make in U.S.A. or pay big border tax,” the next president declared in an overnight tweet, slamming General Motors for “sending Mexican-made model of Chevy Cruze to U.S. car dealers-tax free across border.” 
 
 The nation’s largest automaker fired back later in the morning by noting, “General Motors manufacturers the Chevrolet Cruze sedan in Lordstown, Ohio.” In a rebuttal statement, it added, “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.” 
 
 Senior officials with several other manufacturers contacted by NBCNews said they are watching developments with Ford and GM closely to see if they will next be targeted. “We’re waiting to see,” said an executive with one of the major Japanese automakers. 
 
 Mexico has found itself at the center of the manufacturing debate, and the auto industry is at ground zero. The country has gone from a relative backwater a decade ago to become one of the world’s five largest sources of automotive production. 
 
 Virtually every major automaker now assembles vehicles in Mexico. In the past year alone, new factories have been opened or started by players including Nissan’s Infiniti – which is pairing up on a plant with Mercedes-Benz – Kia and Audi. ||||| FLAT ROCK, Mich./WASHINGTON (Reuters) - Ford Motor Co (F.N) on Tuesday scrapped a planned Mexican car factory and added 700 jobs in Michigan following criticism by Donald Trump, as the U.S. president-elect turned his attention toward rival General Motors Co (GM.N) with the threat of a “big border tax” over compact cars made in Mexico. 
 
 Ford CEO Mark Fields called the move “a vote of confidence” in Trump, but primarily a response to a decline in North American demand for small cars like those that would have been made at the Mexican plant. He said Ford would have made the same decision even if Trump had not been elected. 
 
 Ford will cancel plans unveiled in April to spend $1.6 billion to build the new plant in San Luis Potosi, Mexico, a project Trump urged the automaker to abandon and called an “absolute disgrace” during the election campaign. 
 
 The No. 2 U.S. automaker also said it would invest $700 million to expand the Flat Rock, Michigan factory and would make new electric, hybrid and autonomous vehicles there. 
 
 Trump’s efforts to browbeat the U.S. car industry show he may go further than other modern presidents to try to influence corporate decisions, especially those related to trade and investment. 
 
 In a Twitter post hours before Ford’s announcement, Trump wrote, “General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!” GM, the largest U.S. automaker, said making some of the Cruze cars in the plant in Coahuila, Mexico was part of its strategy to serve global customers, not sell those vehicles in the United States. 
 
 Related Coverage Mexico says does not expect Ford move to spark similar decisions 
 
 Trump’s GM tweet was his latest broadside aimed at an American company over jobs, imports and costs even before he takes office on Jan. 20. 
 
 Mexico’s government said it regrets Ford’s decision and has ensured that the company will reimburse San Luis Potosi state for any costs associated with the investment. 
 
 “Obviously, this isn’t a good decision for us,” said Mexico’s economy minister, Ildefonso Guajardo. 
 
 Ford said it still will shift production from Michigan of its Focus compact car to an existing plant in Hermosillo, Mexico. Fields said he expects Michigan to give incentives for Ford’s investment in Flat Rock. 
 
 Ford spokeswoman Jennifer Flake said the automaker will save $500 million by not opening the new plant in the near term, but will have some undisclosed costs to retool the other Mexican plant to build the Focus. 
 
 Ford shares closed up about 3.8 percent. GM shares rose about 0.9 percent. 
 
 Ford Motor Co. Flat Rock Assembly Plant is seen in Flat Rock, Michigan, U.S. January 3, 2017. REUTERS/Rebecca Cook 
 
 TRUMP NOTIFIED 
 
 Top Ford executives personally notified Trump and Vice President-elect Mike Pence of their decision. Fields praised tax and regulatory proposals advocated by Trump and his fellow Republicans who control Congress. 
 
 “Our view is that we see a more positive U.S. manufacturing business environment under President-elect Trump and the pro-growth policies and proposals that he’s talking about, so this is a vote of confidence for President-elect Trump and some of the policies that they may be pursuing,” Fields said. 
 
 Union workers gathered at the Flat Rock factory cheered Fields’ announcement. Hiring of the 700 new workers there will probably start in 2018 with the majority of it in 2020, Fields said. 
 
 Trump said during the presidential campaign that if elected he would not allow Ford to open the new plant in Mexico and would slap hefty tariffs on imported Ford vehicles. Trump also accused Mexico of sending criminals and rapists into the United States and vowed to build a border wall to combat illegal immigration. 
 
 Since winning the Nov. 8 election, Trump has targeted a wide range of American companies also including United Technologies Inc (UTX.N), Boeing Co (BA.N) and Lockheed Martin Corp (LMT.N). Trump also has touted decisions by companies to keep some production in the United States, including United’s Carrier unit in Indiana. 
 
 Trump previously vowed to hit companies that shift production from America to other countries with a 35 percent tax on their exports into the United States. He also has denounced the North American Free Trade Agreement between the United States, Mexico and Canada. 
 
 Slideshow (4 Images) 
 
 Fields said there were no negotiations between Ford and the incoming president over canceling the Mexico plant or investing in Michigan. 
 
 Ford will build a battery electric SUV with a 300-mile (482-km) driving range at the Michigan plant by 2020, and will launch production there by 2021 of a fully autonomous vehicle without a steering wheel or a brake pedal for use in ride services fleets. Ford also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020. 
 
 GM said it sold about 190,000 Cruze cars in the United States in 2016. All of the sedan versions sold in the United States, about 185,500, were built at its Lordstown, Ohio plant. About 4,500 hatchback Cruze versions were assembled in Mexico and sold in the United States. ||||| Skip in Skip x Embed x Share CLOSE Mark Fields, President & CEO, Ford Motor Co., details seven of 13 new global electrified and autonomous vehicles coming in the next five years, including the F-150 Hybrid, Mustang Hybrid and Transit Custom plug-in hybrid. Clarence Tabb Jr., The Detroit News 
 
 Mark Fields, Ford president & CEO, detailed seven of the 13 new global electrified vehicles it plans to introduce in the next five years, including hybrid versions of the iconic F-150 pickup and Mustang in the U.S. (Photo: Clarence Tabb Jr, Detroit News) 
 
 Flat Rock — Ford Motor Co. said Tuesday it is canceling plans to establish a $1.6 billion in plant in Mexico to build the Ford Focus. It plans to invest $700 million at its Flat Rock Assembly Plant and create 700 new jobs in Michigan as it adds production of a new electric small SUV and a self-driving hybrid vehicle. 
 
 Ford was repeatedly criticized on the campaign trail by President-elect Donald Trump for its plans to build a plant in San Luis Potosi, Mexico, where it was to build the next-generation Focus. Instead, it will build the car at an existing Mexico factory. 
 
 Ford President and CEO Mark Fields cited the company’s recent decision on a shift in buyer preferences as compact car sales have fallen. But he said factors included the pro-business environment it sees in the U.S. amid proposed policies under Trump. 
 
 Ford had planned to ship production of the Focus from the Michigan Assembly Plant in Wayne to the San Luis Potosi plant, on which initial construction had begun, Fields told reporters here. But he said the automaker decided “recently” to instead build the Focus at its Hermosillo plant in Mexico. 
 
 Fields said the decision was made independently of the president-elect, though his proposed policies were a factor. 
 
 “We look at all factors and in our view, we see a more positive U.S. manufacturing environment under President-elect Trump and the pro-growth policies and proposals that he’s talking about,” Fields said. “So this is a vote of confidence for President-elect Trump and some of the policies he may be pursuing.” 
 
 Ford Chairman Bill Ford Jr. called Trump, and Fields called Vice President-elect Mike Pence to share the news Tuesday morning. 
 
 “They were very pleased that we were investing here in the United States and actually adding 700 jobs on top of the 28,000 that we’ve added over the last five years,” Fields said. 
 
 Trump later re-tweeted a headline about the decision. And on Wednesday, he thanked Ford in a tweet: “Thank you to Ford for scrapping a new plant in Mexico and creating 700 new jobs in the U.S. This is just the beginning — much more to follow.” 
 
 Trump on the campaign trail often criticized Ford for its decision to shift production of small cars from the U.S. to Mexico. Ford defended its decision and said that no U.S. jobs would be lost over the decision, and instead two new vehicles would be coming to Michigan Assembly. The Detroit News and others have reported those are the Ford Ranger pickup and Bronco SUV. 
 
 Flat Rock will get a new manufacturing innovation center, and the factory will be capable of producing electrified and autonomous vehicles, plus the Ford Mustang and Lincoln Continental that it already builds here. Flat Rock will get two new vehicles: an all-electric SUV with an estimated range of 300 miles that will be built at the plant by 2020, and an autonomous hybrid vehicle will debut in 2021. Ford plans to use that self-driving vehicle for ride-hailing or ride-sharing services. 
 
 The cars are among 13 new global electrified vehicles to be introduced in the next five years, including an F-150 Hybrid pickup available by 2020 to be built at the Dearborn Truck Plant, Mustang Hybrid debuting in 2020 and Transit Custom plug-in hybrid available in 2019 in Europe, the company said Tuesday. Ford also plans to build two new hybrid police vehicles, one of which will be built in Chicago. 
 
 Ford in December 2015 said it would invest $4.5 billion in electrified vehicles by 2020. 
 
 Americans have not embraced electric vehicles. But Ford believes adoption will grow. 
 
 “We think the industry is changing, the infrastructure’s starting to build,” Fields said. “That’s our view that within the next 15 years we’ll see more electrified offerings ... it’s hybrids, plug-in hybrids and battery-electric vehicles, than we’ll see gasoline-powered.” 
 
 Some analysts are skeptical that consumers will buy in. 
 
 “Ford’s commitment to more hybrids and electrics is a leap of faith, as current sales of electrified vehicles are terrible,” said Brad Korner, general manager of AIS Rebates, a Cox Automotive brand company. “In the market today, hybrids and electrics are among the industry’s most incentivized. Ford is betting big that this trend will change over time and the world is ready for hybrid versions of the Mustang and F-150. It’s a big bet.” 
 
 New jobs may be added at Flat Rock beginning in 2018, with the majority happening in 2020, Fields said. 
 
 Ford announced the Flat Rock investment news to employees and members of the news media who gathered in the plant. “Ford is a global automaker, but our home is here in the U.S,” Fields said. 
 
 United Auto Workers Vice President Jimmy Settles thanked Ford for putting people over profits, and for keeping and expanding jobs in the U.S. He told workers at the plant that temporary workers at Flat Rock will be made permanent employees, though he did not have specifics on how many would be hired. Settles told reporters he learned of Ford’s decision about a week ago. 
 
 The Flat Rock plant had been on a closure list in 2009 during the economic recession. Settles said the announcement gives the 3,200-plus workers here a future. 
 
 He said he thinks Flat Rock was chosen for the new products, including the autonomous vehicle, and investment because it has space, is not running at full capacity and because workers have led successful launches of the Mustang and new Continental. 
 
 “I’ve been around a lot and seen a lot and many peaks and valleys, but this is at the top because I know what this will mean long-term for people in this plant and also in America,” Settles said. 
 
 Ford is working with the state of Michigan and local officials to receive possible tax incentives for the Michigan investment. Ford employs 47,000 workers in the state. 
 
 The Michigan Economic Development Corp. declined comment Tuesday on any pending incentive package. The earliest the Michigan Strategic Fund could review a request is Jan. 24, spokeswoman Emily Guerrant said, but she was unsure if a Ford package would be ready for consideration. 
 
 Fields said Mexican officials were somewhat disappointed by Ford’s change; that plant was supposed to employ 2,800. But Fields said its decision will safeguard 2,900 jobs at the Hermosillo plant and it will add about 200 jobs there. 
 
 He said Ford’s production change overall will save $500 million. 
 
 Ford stock closed up 3.8 percent to $12.59 Tuesday. 
 
 mburden@detroitnews.com 
 
 (313) 222-2319 
 
 Staff Writer Jonathan Oosting contributed. 
 
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– Ford may have found a successful strategy for dealing with Donald Trump: letting him take credit for stuff it was going to do anyway. The company's announcement Tuesday that it's canceling a $1.6 billion plant in Mexico was seen as a big victory for the president-elect, but a closer look at the company's plans suggests Trump didn't change anything, NBC News reports. Ford is still shifting small-car production to Mexico, now to an existing plant in Hermosillo, and the $700 million investment in a Flat Rock, Mich., plant announced Tuesday appears to have already been in the pipeline, with the plant building two models that were not expected to be built in Mexico. Ford CEO Mark Fields described the move as a "vote of confidence" in Trump's policies, though he said the same move would have been made if Trump hadn't been elected, Reuters reports. Joe Hinrichs, Ford's president of the Americas, tells NBC that falling demand for smaller cars was the main reason for the shift. He says revised sales figures no longer justified building a new plant in Mexico, and that meant money was available to invest in the Michigan plant. The Detroit News reports that Ford is working with Michigan officials to receive possible tax breaks for the Michigan investment. The move is expected to create around 700 new jobs at the plant, most of them starting in 2020. Around 200 jobs will be added in Hermosillo. (In November, Trump took credit for keeping a Ford plant in Kentucky.)