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Ford Announces $2.5 Billion USD Investment for New Engine, Transmission Plants in Mexico

  • Ford is investing $2.5 billion USD in new engine and transmission plants in the Mexican states of Chihuahua and Guanajuato, respectively
  • Approximately 3,800 direct jobs will be generated through three projects – a new engine plant in Chihuahua, expansion of Ford’s I-4 and diesel engine lines in Chihuahua and a new transmission plant – Ford’s first in Mexico – in Guanajuato
  • The investment is part of the company’s One Ford plan, which emphasizes global competitiveness. The news comes as Ford celebrates its 90th year in Mexico

Further building its lineup of increasingly fuel-efficient engines and transmissions, Ford today announced a $2.5 billion investment in two new facilities building a new generation of engines and transmissions in the states of Chihuahua and Guanjuato, respectively.

The investment, which comes during the celebration of Ford’s 90th anniversary in the country, will bring 3,800 direct new jobs plus additional indirect jobs to Mexico. Ford officials announced the investment today 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 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. This $1.1 billion investment and 1,300 new jobs will allow Ford to export engines to the U.S., Canada, South America and the Asia-Pacific region, supporting the company’s growing small car lineup.

An additional $200 million dollar investment as well as the creation of 500 more 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.

In addition, Ford is building a new transmission plant within the premises of transmission supplier and longtime partner Getrag, which is based in the City of Irapuato in the State of Guanajuato. This $1.2 billion investment brings approximately 2,000 new jobs.

This new plant – Ford’s first transmission facility in Mexico – will produce two all-new automatic transmissions 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 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 also has established an Engineering Center in Mexico, which employs more than 1,100 engineers who support global projects. 

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams.  The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty.  Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services.  The company does that through three customer-centered business segments:  Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs.  Additionally, Ford provides financial services through Ford Motor Credit Company.  Ford employs about 175,000 people worldwide.  More information about the company and its products and services is available at corporate.ford.com.

About Ford of Mexico

Ford of Mexico began operations in 1925 and has Stamping and Assembly Plants in Hermosillo and Cuautitlan, as well as Engine Plants I and II in Chihuahua, in addition to its headquarters established Mexico City. In Mexico Ford manufactures the following vehicles: Ford Fiesta, Ford Fusion and Lincoln MKZ, including the hybrid versions of the last two. The manufacturing strategy also incorporates the assembly and production of engines such as Duratec I-4 (2.0- and 2.5-liter) and Power Stroke Diesel 6.7-literL V8 and diesel 4.4-liter. The brands that form the Mexican group include Ford and Lincoln.