New Ford plant will create 2,800 new jobs -- in Mexico

Last Updated Apr 7, 2016 11:52 AM EDT

DETROIT -- There is nothing stopping Ford from building a new auto plant in Mexico.

Ford says it's decision will create 2,800 new jobs by 2020 -- new jobs in Mexico. The move was immediately denounced by Donald Trump as " an absolute disgrace," and by the United Auto Workers as "very troubling."

Starting in 2018, production of smaller Fords will move from the Wayne, Michigan plant to San Luis Potosi state in Mexico. At the 40-lane Wayne Bow, manager Victoria Stone says it's a raw deal.

"They're taking business away from us, they're taking business away from the city, the state of Michigan. And I was born and bred on Ford Motor Company."

Veteran autoworkers in this country make about $60 an hour when all the benefits are factored in, versus about $8 an hour in Mexico -- an obvious incentive for Ford.

During contract talks last year, the United Auto Workers did not fight Ford's plans to build smaller vehicles in Mexico. Instead it demanded, and won, higher wages at plants in the U.S. instead.

And when the small car production moves south of the border, the plant in Michigan won't be shuttered. Analysts expect Ford will start production here on a new truck and SUV -- high-priced items in hot demand with gasoline prices low.

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Workers put together a vehicle inside the Ford plant in Wayne, Michigan

CBS News

Auto industry analyst Mike Jackson says criticism from Trump and others about this Ford deal is misinformed, and people should not be outraged.

"Certainly there is some posturing, it's part of business. Ford is trying to maintain its competitive position going forward, right? I mean, that's it."

Setting up shop in foreign countries is an automotive industry trend that has been going on for a long time, and will continue when it's for the good of the company.

Just today, Fiat Chrysler announced it is investing half a billion dollars in Argentina to produce a new vehicle for the Latin American market.

  • Dean Reynolds

    Dean Reynolds is a CBS News National Correspondent based in Chicago.