Ford to invest US$ 1.6 billion in small car plant in Mexico

In order to increase its competitiveness, Ford Motor Company is investing in a new small car plant in Mexico, building a new manufacturing site in San Luis Potosi State.

The US-based automaker is investing US$ 1.6 billion (Rs 10,660 crore) in the facility, which begins construction this summer. The new plant will create 2,800 additional direct jobs by 2020.

Specific vehicles being produced at the new facility will be announced later.

The investment comes during Ford’s 91^st year in Mexico, including manufacturing vehicles since 1925. Mexico, which has 116 Ford dealers, is the company’s fourth largest vehicle manufacturing site for global customers – behind the US, China and Germany. Vehicles produced in Mexico also serve customers in the US, Canada, China, Argentina, Bolivia, Brazil, Colombia, Chile, Paraguay, Peru, Uruguay and South Korea.

The investment is part of the company’s One Ford global product and manufacturing plan. During the past five years, Ford has invested more than US$ 10.2 billion in Ford facilities alone in the US. In addition, Ford has invested US$ 2.7 billion in facilities and supplier tooling in Spain, US$ 2.4 billion in Germany and – with the company's partners – US$ 4.8 billion in China. The latest announcement by the company also includes an investment of US$ 170 million in South Africa, which will see the production of Everest SUV and ranger pick-up.

All of these investments are part of the company’s plan to serve global markets and deliver profitable growth. 

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