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Earlier this year Ford confirmed plans to introduce a fully electric SUV in 2020. Now Ford has announced that production of the new electric SUV is shifting from its plant in Flat Rock, Michigan to Mexico so that it can produce an autonomous vehicle in Michigan.

This allows us to bring this exciting new vehicle to global customers in a more effective way to support our overreaching business goals,” Ford stated.

By moving production of the electric SUV to its plant in Cuautitlan, Ford will be able to lower the labor costs, while at the same time by building the autonomous vehicle in the United States, Ford will be able to better compete with its rivals. Production of the electric SUV is expected to start in 2020, while the autonomous vehicle will start rolling off the production line in 2021.

Ford hasn’t revealed too many details about its new autonomous vehicle, but it will have a hybrid powertrain and it will not be a Fusion sedan.

While President Trump won’t be happy about Ford’s decision to move production to Mexico, Ford does say that the decision to build the autonomous vehicle in Michigan will see it invest $200 million in the Flat Rock plant. At least 150 jobs will also be added.

Source: Automotive News