Ford is planning to invest $9.2bn in Mexico over the next six years as part of its Way Forward turnaround plan, launched in January, according to the Detroit-based website, TheCarConnection.com.
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The plans were included in a 28-page document prepared by Ford of Mexico and obtained by a member of TheCarConnection.com team, and first published in The Oakland Press, a Detroit-area newspaper.
According to Reuters, Ford executives have said the report is speculation, and in an interview last night, Mark Fields, president of Ford’s operations in the Americas refused to comment.
The report states that Ford could leverage Mexico’s cost advantage to reduce fixed costs. It also said that Ford could increase sourcing from Mexico by 300% and that its suppliers could invest a further $3.6bn.
The plan would call for investment incentives from the Mexican government, and may also involve transferring some engineering and purchasing jobs to Ford of Mexico. Up to 150,000 jobs could be created in the country.
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By GlobalDataSpecific components of the plan include revamping Ford’s old assembly plant in Cuautitlan, and building a new Greenfield plant. In addition Ford would substantially increase engine and transmission production in the country.
Ford announced its Way Forward plan in January. It calls for the closure of seven assembly plants and the axing of 25-30,000 jobs in North America. Ford has also said it would build a new assembly plant in North America somewhere, but has not yet announced where.
