Ford announced Tuesday it is canceling plans to build a $1.6 billion plant in Mexico and instead will boost US production of electric vehicles.

"Ford today announced it is canceling plans for the new plant in San Luis Potosi, Mexico," the company said in a statement.

At the same time, Ford is adding 700 US jobs and investing $700 million during the next four years to expand its Flat Rock Assembly Plant in Michigan so that it can build self-driving and electric vehicles.