Ford investing $2.5B for new engine, transmission plants in Mexico
17 April 2015
Ford is investing $2.5 billion in new engine and transmission plants in the Mexican states of Chihuahua and Guanajuato, respectively. The investment covers three projects: a new engine plant in Chihuahua; expansion of Ford’s I-4 and diesel engine lines in Chihuahua; and a new transmission plant—Ford’s first in Mexico—in Guanajuato.
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 officials announced the investment today during a ceremony with Mexican President Enrique Peña Nieto and other members of the country’s Federal Government.
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 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 dollar 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 investment brings approximately 2,000 new jobs.
This new plant 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.
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.
Still want to buy a Ford when you know in our time of need they ship 3,500 plus jobs out of the county to produce smog machines?
Why are they not producing plugins here in the U.S. instead?
Yes, I know, they all do it; but, that doesn't make it right when they know we need the money and the jobs.
If our economy was stable, I wouldn't worry; but, it isn't and I can prove it with one question: "How much interest does your saving account earn? the answer; about $2 for every $20,000 you hold in savings. You think that's a sound economy?
Posted by: Lad | 17 April 2015 at 05:07 PM
Lad
Ford is not shipping jobs out the US to Mexico. The US auto companies have had a long standing agreement with both Canada and Mexico where no duties are paid either way as long as the dollar value being shipped both ways balances. Ford builds engines in Mexico which are shipped to the US and US made Ford Taurus (for example) or US made Ford Escapes are shipped to Mexico. What this accomplishes is that it allows the smaller Mexican and Canadian markets to have a complete lineup of Ford (or GM) vehicles.
Unfortunately, I do not have a solution for the low interests rates on savings.
Posted by: sd | 19 April 2015 at 11:04 AM