Ford to Announce $2.5 Billion Investment in Mexico
Ford is set later this week to announce a $2.5 billion investment in production in Mexico, which will cover an expansion of the pre-existing engine plant in Chihuahua and the construction of a new transmission plant in an as-yet-undetermined location.
According to Detroit Free Press (via Reuters), Ford is set to announce the particulars of the investment on Friday. Ford, as can be expected, released a statement on Tuesday saying that it “cannot comment on future product or manufacturing plans.”
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At present, Ford builds 4.4-liter diesel engines and 6.7-liter diesel engines at a 727,000-square-foot manufacturing plant in Chihuahua, and it also maintains stamping and assembly plants in Cuautitlan and Hermosillo.
Ford has been along with the industry trend of moving manufacturing to Mexico, which is currently the fourth largest global vehicle exporter and the world’s eighth largest vehicle producer.
“Mexico has put so many of these free trade agreements in place in a very shrewd move and it’s worked,” Karl Brauer, senior analyst with Kelley Blue Book, told Freep. “It’s drawing in automakers and all sorts of industries because of the low cost of doing business there and selling the products across the globe.”
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News Source: Detroit Free Press (Via: Reuters)