Originally Posted by Sky News

The carmaker says its decision - following criticism of the company by Mr Trump -is a vote of confidence in the president-elect.

Ford is cancelling plans for a $1.6bn (£1.3bn) plant in Mexico as car manufacturers come under pressure from Donald Trump over US jobs.

The announcement came hours after the president-elect threatened Ford's rival General Motors with a "big border tax" its manufacture of cars outside the US.

Ford said it was creating 700 new jobs as it expands a new assembly plant in Flat Rock, Michigan, that will build high-tech self-driving and electric vehicles.

It said the investment was being paid for from money it had previously earmarked to build a new plant in San Luis Potosi, Mexico.