Ford Motor Company says it has cancelled plans to build a car factory in Mexico. Ford said this week it will not move forward with plans to build a factory in the central Mexican state of San Luis Potosi. The American company had planned to spend $1.6 billion to build the manufacturing center. It would have produced compact cars. Instead, Ford officials announced plans to expand the company’s factory in Flat Rock, Michigan, adding 700 jobs. Officials said the Flat Rock plant will be used to develop fully electric vehicles and hybrid models, ones that use both gasoline and electricity. The plant also will build a self-driving vehicle. Mark Fields, Ford’s chief executive officer, announced the decision on Tuesday. He said the company would invest $700 million to build several different models at the Flat Rock plant.