Ford Confirms Plans for Mexican Upgrades

Days after a confidential document was leaked to the media revealing massive expansion plans in Mexico, Ford Motor Co. issues a release confirming its intent to expand in the country.

As part of its “Way Forward” restructuring plan, Ford says it plans upgrades to Ford Motor Co. S.A. de C.V.’s two existing assembly plants – located in the cities of Cuautitlan and Hermosillo – as well as its engine plant in Chihuahua.

Currently, Ford builds the F-Series pickup and Ford Ikon in Cuautitlan, engines for several vehicles in Chihuahua, and the Ford Fusion, Mercury Milan and Lincoln Zephyr sedans in Hermosillo.

Ford says details of the upgrades will be made available “over the next several years, as the improvements take place.”

“Ford has been doing business in Mexico since 1925, and we were the first auto maker ever in the country,” Mark Fields, president-The Americas says in a statement, adding that the company will be modernizing its Mexican operations in much the same way it has modified facilities in the U.S. and Canada.

Ford says the announcement to upgrade facilities in Mexico does not include plans to build a new, low-cost assembly plant in the country, as the leaked document suggests. However, the auto maker does say it intends to follow through on plans to build such a facility somewhere in North America as part of its restructuring plan. Ford declines to say when an announcement would be made on the forthcoming plant.

“We remain committed to a new low-cost manufacturing facility. But we have made no decisions on where it will be located,” Fields says. “The key to success will be high quality and low cost, and that certainly can be in the U.S., Canada or Mexico.”

According to Louise Goeser, president and CEO-Ford of Mexico, the country remains integral to the auto maker’s future success.

“Mexico remains an excellent business environment for Ford, and it will remain a key manufacturing location for our global automotive operations as a result of these investments.”

Ford does not reveal the amount of its proposed Mexican investments. However, the leaked document estimates the total to be approximately $9.2 billion, including a new plant.