Confirmed: Ford Will Upgrade 3 Mexican Plants

[Perian]

Source: Automotive News email alert - 06/16/06

DETROIT -- Ford Motor Co. said Friday it will upgrade three of its Mexican plants over the next several years but did not comment on where it will build a new low-cost plant.

"We remain committed to a new, low-cost manufacturing facility," said Mark Fields, Ford's president of the Americas, in a statement. "But we have made no decisions on where it will be located."

Ford has said it will build a low-cost plant in North America as part of its Way Forward recovery plan. Leaked copies of what appeared to be an in-house proposal for increased capacity in Mexico spurred reports this week that the plant would be built in Mexico. The proposal included other possible Mexican projects totaling $9.2 billion.

Ford will upgrade assembly plants in Cuautitlan and Hermosillo, as well as its engine plant in Chihuahua. Ford did not reveal the cost or capacity increases involved.

Ford builds the Ford Fiesta Ikon and F-series Heritage and Super Duty pickups in Cuautitlan. It builds the Ford Focus and Fusion, Lincoln Zephyr and Mercury Milan in Hermosillo.

[Perian]

Nothing like the release of a top secret internal document to get management in the decision making mode...

The real question:

Can GM be far behind?

[cfch3399]

GM is doing the same. It's sick that we have to finance Mexico's recovery.
So Ford and the UAW are saying that there's no way to use those $9.2 billion to keep Americans employed?

[mobyss]

Just remember when Billy Ford tells you to "Buy American"!

[mikesright]

GM is doing some upgrading work on existing facilities, but GM has committed to three places for the vast majority of work. USA, Canada (both for high-volume, high-profit vehicles) and GM-DAT in Korea for low-cost manufacturing (such as subcompacts). While they have upgraded some plants there, most of GM's Mexican plants produce are for well....Mexico. GM has committed to the new plant in Lansing for the Lambdas, and Oshawa for the Zetas, each one of its truck plants for the new GMT-900's, and even plants producing lower margin products such as Delta and Epsilon. GM won't be able to produce subcompacts here until the politicians do something about the lower cost countries, because everyone else will be able to put more money into the designs and make money off of them too, while GM would put an unprofitable subcompact on the road that looks as if the accountants had their way with it last night.

Ford, Toyota, etc, are putting high-volume, high-margin products there, which they really shouldn't. But feel free to castigate GM here.

[01cavalier]

Originally Posted by mobyss

Just remember when Billy Ford tells you to "Buy American"!

Yah, correct it to "buy Mexican"

[Wagon of Fury]

Well, technically Mexico is in (North) America, so all they will have to do on the print ads is add a asterisk *

"The best selling cars built in America*"

[1999 White C5 Coupe]

At least Ford doesn't promote its cars as "An American Revolution".....

[Z28x]

Originally Posted by mobyss

Just remember when Billy Ford tells you to "Buy American"!

We get a lot of Canadian cars too. It will also help keep Mexicans out of the US that are looking for jobs. You can either have mexicans building cars in America, or Mexicans building cars in Mexicco. Either way keeping jobs in North America is a very good thing. A poor mexico is not good for the USA

[jon21]

Billy Boy and Mark Fields are a total jerks!

[mobyss]

Originally Posted by Z28x

We get a lot of Canadian cars too. It will also help keep Mexicans out of the US that are looking for jobs. You can either have mexicans building cars in America, or Mexicans building cars in Mexicco. Either way keeping jobs in North America is a very good thing. A poor mexico is not good for the USA

How about Americans building cars in Ohio, Tennesse, or Texas? You know, Honda Accords, Nissan Altimas, Toyota Tundras?

When does the BS about Korean Chevys, Mexican Fords, and Australian Pontiacs being "American" finally get shoveled?

When Ford sends $9.2 Billion out of the US and Toyota spends $4 Billion in Texas, you're going to have a hard time convincing me which one is the "American" company.

Oh - I guess the fact that Billy Ford and the GM honchos have their mansions and yachts in Michigan counts for something, right? I really care about their lifestyles...

[mobyss]

Originally Posted by Wagon of Fury

Well, technically Mexico is in (North) America, so all they will have to do on the print ads is add a asterisk *

"The best selling cars built in America*"

Uhh, except that the Toyota Camry is built in the United States of America, and outsells anything Ford builds by about 3:1. But you're right that Ford will probably come up with some convoluted marketing:

"The best-selling American* built car built by a US-based manufacturer** that still has more than 50% of it's factories in America***"











*"America" includes Canada, the US, Mexico, Brazil, Chile, Cuba, and Argentina

**Billy Ford has offices in Michigan, California, Texas, and New York, along with other international locations

***50% figure for 1960-2000 period, and not guaranteed past 2009

[camaro_freak]

okay import haters... explain how this move by Ford will help our economy and keep that investment money within our borders?

[erasmus]

Originally Posted by camaro_freak

okay import haters... explain how this move by Ford will help our economy and keep that investment money within our borders?

The same way Toyota and Honda helps our ecomomy by importing Yari and Fits.

[megeebee]

While this may be a bit sad for the UAW, it is from the stadpoint of history, inevitable. An improving economy in Mexico will go along way to moderating the issue of illegal immigration. Domestic manufacturers have been building vehicles in Mexico for a long time. On the whole, the quality of these vehicles has been at least as good as ones built in the USA. GM builds the Escalade EXT and ESV there. The Aztek was built there, and before y'all start laughing, the Aztek was a sales failure but it was always rated very highly by the people who bought them. (I'm not sure, but is the Rendevous built there?) Fords new triplets (Fusion-Milan-Zephyr) are built there and seem to delight everyone who buys or tests them.
Europe has the European Union. We as a nation, and as a culture, have to mature and share the wealth with our neighbors (like we do with Canada and Canada does with us) in the entire hemisphere. Sooner or later, economic realities will force this upon us if we don't plan for it. Weather we think Fords plans are fair or not, the US will be better off with prosperous neighbors both North and South.