Ford has told suppliers it plans to shift production of midsize Fusion and Mondeo sedans out of Mexico and Spain in 2020 and move it to China, three sources told Reuters.

The automaker has said it would not ship those cars from China to the United States and Europe.

Reuters said Ford did not address the future of the plants in Hermosillo, Mexico and Valencia, Spain that currently build midsize sedans for the North American and European markets, respectively.

It noted Ford had said last month it would spend about EUR750m in Valencia to produce a new generation Kuga sport utility vehicle.

Recent Ford documents shared with suppliers show the automaker plans to shift some Focus and Mondeo production to China, and no longer list Hermosillo and Valencia as production sites, sources familiar with the company's plans told Reuters.

Ford said in a statement cited by Reuters  "we have no plans to export the next generation Fusion/Mondeo from China to North America and Europe. Fusion/Mondeo are an important part of the Ford car lineup. We will have more information to share about the next Fusion/Mondeo at a later date".

The news agency noted Ford CEO Jim Hackett has taken a series of steps to cut the automaker's production costs and shift the company's product line away from sedans toward sport utility and crossover vehicles, especially in North America.

Fusion sales in the US are down 22% this year while Mondeo sales in Europe are off 21%, Reuters said.

Back in July, it was reported new CEO Jim Hackett was assessing whether to reduce and consolidate production of models such as the Fiesta subcompact and two midsized sedans that are built in multiple locations around the world but are experiencing slowing demand.

Reuters said one proposal would shift production of the next generation Mondeo from Europe to Mexico where it would share an assembly line with its Fusion sibling, avoiding the cost of retooling two plants.

Ford in 2014 closed its Genk, Belgium plant, which made the Mondeo, and transferred production to Valencia in Spain.

Hackett, soon after becoming Ford CEO, approved a proposal to shift production of the next Focus for North America from Mexico to China, saving an estimated US$500m by consolidating two factories into one.