A leaked memo reportedly argued the move will allow the company to spend more on autonomous vehicles in Michigan.
Ford has reportedly backtracked on plans to build an electric crossover at its domestic factory in Flat Rock, Michigan.
An internal memo apparently points to a new plan that will send the project to Mexico for production by mid-2020.
"This allows us to bring this exciting new vehicle to global customers in a more effective way to support our overreaching business goals," the memo said, according to Automotive News.
The decision was framed as a good thing for Ford's US-based workforce, allowing the company to allocate more development resources to autonomous vehicles at home.
Ford has claimed to be on track to deploy fully self-driving cars by 2021 via a partnership with Lyft.
US automakers appear to have focused on car production in Mexico, taking advantage of low wages to offset the thin profit margins and waning sales. Ford's announcement will undoubtedly cause a bit of a stir among US production workers who may have expected the company's most cutting-edge vehicles to be built at home.