ford mexico

Ford Motor building new plant in San Luis Potosi

Ford Motor Co. plans to build a new $1.6 billion auto assembly plant in Mexico, creating about 2,800 jobs and shifting small-car production from the U.S. at a time when moving jobs south of the border has become a major issue in the U.S. presidential campaign.

The company announced the plant in the San Luis Potosi state Tuesday without saying specifically what cars it will build there. But the United Auto Workers union has said Ford plans to shift production of the Focus compact and C-Max small gas-electric hybrid from suburban Detroit to Mexico, where the cars can be made at lower cost and more profitably.

The UAW’s new four-year contract with Ford, signed last year, guarantees new vehicles for the Wayne, Michigan, assembly plant in 2018 and 2020 and a $700 million investment that preserves the plant’s 3,924 jobs. Union members have said they expect the factory to get a new version of the Ranger small pickup and a new small SUV called the Bronco.

Kia Motors says to start Mexico output

Ford announced the Mexican plant on the day of the key Wisconsin primary. Republican front-runner Donald Trump has railed about corporate America moving jobs to Mexico to take advantage of what he calls a lopsided trade agreement. He has vowed to rewrite the 1994 North American Free Trade Agreement, tax imports and punish U.S. companies including Ford.

The automaker has responded to Trump by highlighting it investments in the U.S. At the New York auto show in March, Ford CEO Mark Fields said the company spends more than 80 percent of its capital in the U.S. and has committed to spending another $8 billion to $9 billion in the next four years.

“Since 2011 we’ve invested over $10 billion in our facilities. We’ve hired over 25,000 people” in the U.S., Fields said.

Auto and other manufacturing jobs having been moving south for years. Mexican auto production more than doubled in the past decade, and the consulting firm IHS Automotive expects it to rise another 50 percent to just under 5 million vehicles by 2022. U.S. production is expected to increase only 3 percent, to 12.2 million vehicles, in the next 7 years.

Joe Hinrichs, Ford’s president of the Americas, said Ford is a global automotive company that builds cars where it makes the most financial sense. He confirmed new plant would build small cars starting in 2018. “We’ve talked about improving our small-car profitability and this is an important part of that,” he said Tuesday in an interview with The Associated Press.

Under the new UAW contract, Ford factory workers get about $60 per hour in wages and benefits, while auto workers in Mexico average about $8 per hour, according to the Center for Automotive Research, a Michigan industry think tank.

Trump began criticizing Ford last summer after the company said it planned to invest $2.5 billion in engine and transmission plants in Mexico. Hinrichs said the timing of Tuesday’s announcement had nothing to do with the presidential race, but instead with the timing of construction of the new plant, due to start this summer.

Mexicans burn Trump effigies at Easter celebrations

Trump hasn’t only targeted Ford. He has pledged to give up Oreos after Nabisco’s parent, Mondelez International, said it would replace nine production lines in Chicago with four in Mexico. He said he would demand that United Technologies reverse a decision to move two of its Carrier heating and ventilating parts plants in Indiana to Mexico, eliminating 2,100 U.S. jobs.

Other candidates have criticized trade deals such as NAFTA, but Trump has gone further. He’s threatened to slap a 45 percent tariff on Chinese imports, and pledged to tax auto parts and other equipment made in Mexico.

The U.S. has long been an open economy, and specific trade deals like NAFTA have not had a major effect on jobs, economists say. The huge wage gap between the U.S. and developing countries and the increasing use of machines to replace workers have had a far bigger impact.

Most of the cars built at Ford’s new Mexican plant would be sold in North America, with the bulk being exported to the U.S., the region’s largest market.

Ford Motor Co. plans to build a new $1.6 billion auto assembly plant in Mexico, creating about 2,800 jobs and shifting small-car . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • cancun-beaches-50-tons-sargassum-cleanupCancún beach overwhelmed by over 50 tons of sargassum in 24 hours Over 50 tons of sargassum were removed from Cancún’s Chac Mool Beach in just 24 hours, as authorities ramp up cleaning efforts across three key public beaches. Cancún’s white-sand beaches are under pressure once again as an unusually large volume of sargassum has washed ashore in the last 24 hours, disrupting tourism and triggering a…
  • cancun-hotels-sargassum-cleanup-failuresCancún government demands answers from hotels on sargassum cleanup failures Mayor Ana Paty Peralta will meet with hotel leaders in Cancún to address failures in sargassum cleanup efforts, amid growing environmental and public health concerns. The municipal government of Benito Juárez is taking a firmer stance on the growing sargassum problem in Cancún, calling on the hotel industry to explain its inadequate handling of seaweed…
  • sargassum-slams-cancun-playa-restaurantsSargassum Crisis in Cancún and Playa del Carmen Forces Restaurants and Beach Clubs to Cut Staff Businesses in Cancún and Playa del Carmen report steep losses due to sargassum, with restaurants losing diners and beach clubs sending staff on unpaid leave. Restaurants and beach clubs along the shores of Puerto Juárez in Cancún and Playa del Carmen are grappling with a sharp downturn in business due to a relentless invasion of…
  • sargassum-free-beaches-quintana-roo-summer-2025Sargassum-Free Beaches in Quintana Roo for Summer 2025, including beaches in Cancún Travelers looking for sargassum-free beaches in Quintana Roo this summer can still find clear waters in Isla Mujeres and parts of Cancún, according to updated reports. As the summer travel season ramps up, much of the Caribbean coast is once again dealing with sargassum, the brown seaweed that washes ashore in thick mats and affects…
  • Body with signs of crocodile attack found in Ameca River, a leg was found last monthBeaches Closed in Nuevo Vallarta and Lo de Marcos After Crocodile Sighting Authorities temporarily close beaches in Nuevo Vallarta and Lo de Marcos after a crocodile was spotted in shallow waters. Tourists are urged to follow lifeguard guidance. Beaches in Nuevo Vallarta and Lo de Marcos were temporarily closed to the public on Friday, June 20, after a crocodile was spotted swimming close to shore, prompting swift…
  • puerto-vallarta-flooding-landslide-hurricane-erickHeavy rains flood Puerto Vallarta streets and trigger landslide in tunnel Flooding from remnants of Hurricane Erick paralyzed key roads in Puerto Vallarta and caused a landslide in the Luis Donaldo Colosio tunnel, Civil Protection continues damage assessment. The city of Puerto Vallarta was overwhelmed Thursday night by heavy rainfall that caused major flooding, stranded vehicles, and triggered a landslide in the Luis Donaldo Colosio bypass…
  • bus-crashes-canal-puerto-vallartaBus crashes into canal in Puerto Vallarta’s 5 de Diciembre neighborhood A public transport bus crashed into a drainage canal in Puerto Vallarta’s 5 de Diciembre area. Authorities responded quickly, and no serious injuries were reported. A public transport bus veered off the road and plunged into a stormwater canal early Thursday morning in Puerto Vallarta’s 5 de Diciembre neighborhood, sparking concern among locals but leaving…
  • Cancún Steps Up Strategy as 40 Tonnes of Sargassum Removed in One DayCancún sargassum removal hits 40 tonnes in one day as beach cleanup expands Cancún steps up sargassum removal efforts with 40 tonnes cleared from beaches in a single day, signaling a more aggressive approach to protect tourism. City officials in Cancún ramped up their beach cleaning efforts this week, clearing 40 tonnes of sargassum from Playa Chac Mool in just one day, one of the largest single-day removals…
  • baja-california-sur-violence-2025Violent Weekend in Baja California Sur Leaves 10 Dead and Sparks Public Fear Baja California Sur faced one of its deadliest weekends in 2025, with 10 people killed during violent clashes in La Paz, Comondú, and Loreto, including innocent victims. Baja California Sur endured one of the bloodiest weekends of 2025, as a wave of violence swept through the municipalities of La Paz, Comondú, and Loreto. In under…
  • heavy-rain-flooding-landslides-puerto-vallartaTrash-Choked Drains Make Puerto Vallarta Flooding Worse During Heavy Rain Overflowing storm drains clogged with garbage are fueling flooding in Puerto Vallarta, officials warn, as rains bring chaos to multiple neighborhoods. As heavy rain swept across Puerto Vallarta Thursday night and into Friday morning, flooding was widespread—but officials say much of the chaos was avoidable. The city’s stormwater drains, overwhelmed not just by rainfall but…
Scroll to Top