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Ford announces US$2.5bn investment for new engine transmission plants in Mexico

Ford has announced a US$2.5bn investment in two new facilities in Mexico – an engine plant in the state of Chihuahua, and a transmission facility in the state of Guanajuato.

The investment, which comes during the celebration of Ford’s 90th anniversary in Mexico, will bring 3,800 direct new jobs, plus additional indirect positions, to Mexico. Ford officials announced the investment during a ceremony with Mexican President Enrique Peña Nieto and other members of the country’s federal government.

“Ford is making a significant commitment to our business in Mexico with investment in two new facilities, while aiming to make our vehicles even more fuel-efficient with a new generation of engines and transmissions that our team in Mexico will build,” said Joe Hinrichs, Ford’s president of the Americas. “These new engines and transmissions will help deliver even better driving experiences and fuel economy gains for customers around the world.”

The new engine facility is being built within Ford’s Chihuahua Engine Plant, where the company will produce a new gasoline-powered engine. The US$1.1bn investment and 1,300 new jobs will allow Ford to export engines to the USA, Canada, South America and the Asia-Pacific region, supporting the company’s growing small car line-up.

An additional US$200m investment, as well as the creation of 500 new jobs, is tied to the expansion of Ford’s current I-4 and diesel engines production in Chihuahua. As a result of these investments, the Ford Engine Plant in Chihuahua will become the biggest engine plant in Mexico.

Ford is also building a new transmission plant within the premises of transmission supplier and longtime partner Getrag, which is based in Irapuato in the state of Guanajuato. The US$1.2bn investment brings approximately 2,000 new jobs and the new plant – Ford’s first transmission facility in Mexico – and will produce two all-new automatic gearboxes for key products primarily in South America, Europe and Asia Pacific, as well as other North American markets.

“Today’s announcement is an important milestone in Ford’s 90-year history in Mexico,” said Gabriel Lopez, Ford of Mexico’s president and CEO. “Currently within Ford, Mexico is the fourth-largest vehicle producer, the fourth-largest engine producer, and is the second-largest nation supplying Ford’s global manufacturing facilities. We look forward to delivering even more great products, including new engines and now transmissions, to serve Ford customers around the world.”

Ford has 11,300 employees in Mexico. The Ford Fiesta, Fusion and Lincoln MKZ, as well as the hybrid versions of both, are manufactured in Mexico. Ford has also established an Engineering Center in Mexico, which employs more than 1,100 engineers to support global projects. 

April 21, 2015

22 April 2015


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