Ford to go ahead with new Mexican factories after all
The car maker, which had capitulated to pressure from Donald Trump, has made another U-turn
Mexico City — Ford is sticking with its plan to build two new factories in Mexico, despite an announcement last month that it had scrapped plans for a plant in the central state of San Luis Potosi.
The US car maker said a factory planned for the central state of Guanajuato would build engines and transmissions, while another in the northern city of Chihuahua would make car parts for use by Ford factories in the US, South America and Asia.
The two facilities will cost about $2.5bn and employ about 3,800 people, said Gabriel Lopez, president and CEO of Ford Mexico.
Ford without warning last month cancelled plans to build a $1.6bn project in San Luis Potosi.
It is one of several American companies coming under pressure from US President Donald Trump, who has offered inducements to keep some US manufacturers in the US, and threatened others with punishing tariffs if they go.
Ford, which has been operating in Mexico for about 90 years, employs about 9,000 workers in Mexico, according to Lopez.