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#Industry News

Ford to Break Ground on $1.6b Plant in Mexico

Ford plans to construct a small car assembly plant in San Luis Potosi, Mexico. With ground slated to broken this summer, the $1.6-billion facility could move cars off the assembly line by early 2018. According to sources at Ford, most of the cars will be exported to the U.S. market.

At the same time, Ford has entered into negotiations with the United Auto Workers (UAW) to build both its Ranger pickup truck and Bronco SUV at a plant in Michigan no later than 2020. The automakers says it plans to make a $9 billion investment in the facility to facilitate manufacturing upgrades.

One reason cited for the auto company’s Mexico plant investment is the country’s free trade agreements, which are said to be more flexible than NAFTA which was signed into law in 1993. Other reasons include, efficient shipping logistics, lower labor costs, staying competitive with other auto manufacturers moving to Mexico and maintaining a presence inside a country where Ford has been doing business since the mid-1920s.

Details

  • San Luis Potosi, San Luis Potosi, Mexico
  • Ford