Ford to Build New Assembly Plant in Mexico, Double Production Output

Ford Chihuahua plant 1 photo
Photo: Miguel Angel Espinos via Panoramio
It’s no secret that Mexico is an important country for the Ford Motor Company. Its production facilities in the Estados Unidos Mexicanos are fundamental to the success of the Blue Oval. Late last year, the Trump attempted to stop Ford from extending its presence in Mexico through a new auto plant, but the Detroit giant refuted Donald Trump’s wish and it is proceeding with its plans to double Mexico production capacity in 2018.
When the Ford Motor Company signed a costly labor deal with the UAW, the contract summary included a line that goes like “One of the biggest challenges facing your negotiators was protecting our jobs. Ford recently announced plans to move some production to Mexico.” To make a long story short, Ford decided to expand its Mexican capacity with a plan that mirrors General Motors’ $5 billion investment by 2018 in Mexico.

As per a report published in the Wall Street Journal, one of the new plants Ford will build in Mexico will be located in San Luis Potosi. This is where the Ford Focus will most probably shift production and the place where Ford plans to assemble an upcoming hybrid vehicle.

Despite this move, Ford will retain pickup truck and sport utility vehicle production in the US because these vehicles sell for higher profit margins. The Michigan plant is expected to focus on assembling the all-new generation Bronco and Ranger pickup.

The new factory in Mexico will begin construction later this year. As an added bonus and a middle finger salute to Donald Trump’s antics, Ford will also expand one of its existing plants in Mexico. But then again, why did Ford and other automakers choose Mexico instead of the United States of America? Hmm...

In a nutshell, blame market economy. Mexico is a boiling pot for the automotive industry as of late, mostly because the companies with investment commitments there are attracted by free-trade deals and significantly lower wages than those in the United States. Some of the manufacturers that operate or announced plans to open a plant in Mexico include Toyota, Honda, Kia, Volkswagen, and BMW.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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