LATIN AMERICAN HERALD TRIBUNE — NEW YORK – The Ford Motor Co. plans to build a new assembly plant to double production in Mexico in 2018 as part of a move that calls for more than $1 billion in investment, The Wall Street Journal reported Monday.
The automaker will add 500,000 units of production in Mexico in that year, the business paper said, citing “people briefed on the plan.”
Ford produced 433,000 vehicles at its Mexican plants last year.
The new plant will be built in San Luis Potosi state and Ford will expand its existing plant near Mexico City, the Journal said.
The automaker will break ground on the new plant at the end of this year, the newspaper said, citing unidentified sources.
Ford plans to produce a new hybrid vehicle in Mexico and will focus on manufacturing pick-up trucks, SUVs and other light trucks, all of which have higher profit margins, in the United States, the Journal said.
Mexico accounts for 14 percent of Ford’s production in North America and about 20 percent of U.S. automakers’ vehicle production in the region.
Ford said on April 17 that it planned to invest $2.5 billion to expand its plant in the northern state of Chihuahua and build a transmission plant in Guanajuato state.
The automaker revealed its investment plans after signing a new collective bargaining agreement with the auto workers union in November, a contract that included pay increases for workers.