Ford Will Invest US$2.5 Billion To Expand its Manufacturing Operation in Mexico
Published By : 20 Apr 2015 | Published By : QYRESEARCH
It was formally announced by Ford Motor Co. on Friday that the company is looking forward to spend US$2.5 billion to expand its manufacturing operations to two of the chosen sites in Mexico.
The industry leading automaker is planning to invest US$1.3 billion to build a new facility dedicated to the manufacture of engine and also to expand its existing operation in Chihuahua. The other US$1.2 billion will be invested by the company for the construction of a new transmission unit in Guanajuato. The huge expansion projects are anticipated to created 3,800 new job vacancies in the global payroll for Ford’s.
Ford, however, declined to reveal any details pertaining to when the operation of the new plant would begin, or what is the period over which the investment will span. It is important to note here, automaker already has several factories located across Mexico. This includes facilities and units dedicated for the manufacture of its Fusion and Lincoln MKZ sedans as well as Fiesta subcompact.
In the past couple of years, Mexico has emerged as one of the most prominent hubs for manufacturing auto and vehicles. The country at present has more than 40 free trade agreements with leading companies. This has helped the economy to draw billions of dollars worth investment for prominent automakers such as Volkswagen AG, General Motors Co., and Nissan Motor Co. In fact these companies have revealed their inclination towards setting up production facilities at Mexico, often at the cost of creating job opportunities in Canada and the U.S.
Opinion leaders are of the view, low wages and improved logistics in Mexico have helped the country in attracting global car manufacturers. In addition, the country is more competitive in the global stage, which has made it the fourth largest exporter of cars and trucks, following Germany, Japan, and South Korea.