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The United Auto Workers union, in response, said
putting jobs in Mexico rather than the United States will be a
major issue at its upcoming U.S. labor talks with Ford, General
Motors Co and Fiat Chrysler Automobiles.
The UAW president, Dennis Williams, said Ford's announcement is
"disappointing, but not any more disappointing than GM's
decision to invest $5 billion in Mexico,” or those made by all
six of the top-selling automakers in the U.S. market.
The companies are drawn to Mexico for its proximity to the
lucrative U.S. market as well as lower worker pay than at U.S.
plants.
The draw of Mexico complicates the UAW's effort to raise worker
pay and keep jobs at U.S. plants.
Ford said its investment, made in its 90th year in Mexico, is a
way to keep the company competitive with other global
automakers.
Ford said it will build a new engine facility within its engine
plant in the northern state of Chihuahua. The facility will
build a new gasoline engine that will be exported to the United
States, Canada, South America and the Asia-Pacific region.
Production of Ford's I-4 and diesel engines at the Chihuahua
plant will also be expanded, making it the biggest engine plant
in Mexico.
The company said it will also build a transmission plant in the
central state of Guanajuato, in partnership with German
transmission maker Getrag.
Ford's announcement, confirming an earlier Reuters report, is
the latest in a recent series of auto investments in Mexico.
Earlier this week, Toyota Motor Corp announced it would spend $1
billion for its first passenger car plant in Mexico, and last
month, Volkswagen said it would invest $1 billion to expand its
plant in Mexico's Puebla state.
(Reporting by Luis Rojas in Mexico City; Additional reporting by
Bernie Woodall in Detroit; Editing by Peter Galloway and Leslie
Adler)
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