Ford to establish 2 new billion-dollar factories in Mexico

Posted on 21 Apr 2015 by Michael Cruickshank

US automobile manufacturer Ford Motor Corporation has this week announced plans to invest in new manufacturing capacity in Mexico.

The company intends to invest a total of $2.5 bn into the construction of two new factories in order to diversity its manufacturing operations.

Ford has earmarked $1.3 billion to build a new engine production facility and expand existing operations in Chihuahua as well as another $1.2 billion to build a transmission plant in Guanajuato.

Together the new plants are expected to create around 3,800 direct new jobs for the Mexican economy, as well as an unspecified number of indirect positions.

Company officials announced the investment during a ceremony with Mexican President Enrique Peña Nieto and other members of the country’s Federal Government.

“Ford is making a significant commitment to our business in Mexico with investment in two new facilities, while aiming to make our vehicles even more fuel-efficient with a new generation of engines and transmissions our team in Mexico will build,” said Joe Hinrichs, Ford’s President of The Americas.

The engines and transmissions to be produced at these facilities will be exported to markets in North America including the US and Canada, as well as to the Asia Pacific and European regions.

Ford already has a significant amount of operations in Mexico, where it currently has more than 11,000 staff on its payroll.

Among the company’s products manufactured in Mexico, are the Ford Fiesta, Fusion and Lincoln MKZ models as well as the hybrid versions of these cars.

“Currently within Ford, Mexico is the fourth vehicle producer, the fourth largest engine producer and is the second largest nation supplying Ford’s global manufacturing facilities,” said Gabriel Lopez, Ford of Mexico’s president and CEO.

Ford in the mood to expand

The new Ford GT will commence production in late 2016.
The new Ford GT will commence production in late 2016.

The announcement of a manufacturing expansion into Mexico follows a very successful 2014 for the company.

It saw record sales of many of its product lines and this enabled the company to generate its fifth straight annual pre-tax profit although the company has announced the closure of its Australian manufacturing facility over the next two years.

Within this environment, the company has been expanding in many markets, especially Asia, where it has recently introduced its luxury ‘Lincoln’ brand.