DETROIT -- Ford Motor Co. has canceled plans to move production of a small SUV from Europe to Kentucky because currency exchange rates no longer favor U.S. production, according to two people familiar with the decision.
Ford had planned to shift the Kuga model next year to Louisville from Saarlouis, Germany, to take advantage of lower labor costs and the weaker dollar, according to the people, who asked not to be identified. With the euro falling, Ford plans to continue producing the Kuga in Germany, they said.
The automaker intended to export as many as 80,000 Kugas a year to Europe, the sources said. That plan was tied in part to exchange rates and labor concessions.