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Ford Motor Co. made a major announcement on Wednesday regarding production that will undoubtedly cause a political ripple or two.

The car company says it’s moving all of its U.S. small car production to Mexico.

The change will occur within the next two to three years.

Ford CEO Mark Fields confirmed the long-expected move Wednesday during an event for investors and Wall Street analysts.

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Ford currently makes its Fiesta subcompact in Mexico, but its Focus and C-Max small cars are made in suburban Detroit. Making them in Mexico would boost company profits because of low wages there.


Ford is apparently making the move with an eye towards electric and self-driving cars.

The company is building a new $1.6 billion assembly plant in San Luis Potosi, Mexico. It will make small cars there starting in 2018.

RELATED: Mexico’s president to Trump: We will not pay for a wall on the border

Ford’s Michigan Assembly Plant, which currently makes the small cars, will be getting new products under a contract signed last year with the United Auto Workers union. They will likely be larger, more profitable vehicles like the Ford Ranger pickup.

The Associated Press contributed to this report.

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