Ford Motor Co is betting big on growth in Mexico. On April 17, the carmaker announced a $2.5 billion (Rs 15,792 crore) investment in two new facilities
20 Apr 2015 | 2604 Views | By Autocar Professional Bureau
Like Toyota, which recently announced plans for a US$ 1 billion plant in Mexico, Ford Motor Co is also making big-ticket investments in Mexico.
On April 17, the American carmaker announced a $2.5 billion (Rs 15,792 crore) investment in two new facilities building a new generation of engines and ...
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Like Toyota, which recently announced plans for a US$ 1 billion plant in Mexico, Ford Motor Co is also making big-ticket investments in Mexico.
On April 17, the American carmaker announced a $2.5 billion (Rs 15,792 crore) investment in two new facilities building a new generation of engines and transmissions in the states of Chihuahua and Guanjuato, respectively.
The investment, which comes during the celebration of Ford’s 90th anniversary in the country, will bring 3,800 direct new jobs plus additional indirect jobs to Mexico. “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. “These new engines and transmissions will help deliver even better driving experiences and fuel economy gains for customers around the world.”
The new engine facility is being built within Ford’s Chihuahua Engine Plant, where the company will produce a new gasoline-powered engine. This $1.1 billion (Rs 6,948 crore) investment and 1,300 new jobs will allow Ford to export engines to the US, Canada, South America and the Asia-Pacific region, supporting the company’s growing small car lineup.
An additional $200 million (Rs 1,263 crore) investment as well as the creation of 500 more new jobs is tied to the expansion of Ford’s current I-4 and diesel engines production in Chihuahua. As a result of these investments, the Ford Engine Plant in Chihuahua will become the biggest engine plant in Mexico.
In addition, Ford is building a new transmission plant within the premises of transmission supplier and longtime partner Getrag, which is based in the City of Irapuato in the State of Guanajuato. This $1.2 billion (Rs 7,580 crore) investment brings approximately 2,000 new jobs.
This new plant – Ford’s first transmission facility in Mexico – will produce two all-new automatic transmissions for key products primarily in South America, Europe and Asia Pacific as well as other North American markets.
“Today’s announcement is an important milestone in Ford’s 90-year history in Mexico,” said Gabriel Lopez, Ford of Mexico’s president and CEO. “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. We look forward to delivering even more great products, including new engines and now transmissions, to serve Ford customers around the world.”
Ford has 11,300 employees in Mexico. The Ford Fiesta, Fusion and Lincoln MKZ as well as the hybrid versions of both are manufactured in Mexico. Ford also has established an Engineering Center in Mexico, which employs more than 1,100 engineers who support global projects.