Ford cancels $1.6 billion plant in Mexico

Ford has cancelled plans for a new 1.6-billion-dollar (US) plant in Mexico -- saying it will move production of its Focus compact cars to an existing plant in Mexico instead.

The second-largest American automaker says it will preserve jobs at the U-S plant that currently makes the Focus by shifting production of two new models to the factory.

It has also announced it will invest 700-million dollars at its factory in Flat Rock, Michigan -- creating 700 jobs to build a range of electric vehicles.

U-S President Elect Donald Trump had threatened to tax Ford over its move to shift production of the Focus to Mexico and his transition team is taking credit for today's announcement -- calling it a vote of confidence for Trump.