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Ford to Announce USD2.5 Billion Investment in Expanding Mexican Plants

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2015-04-21

The year 2015 is the 90th anniversary of Ford’s presence in the Mexican automotive market and Ford is now planning to expand its Mexico-based plants with further investment of USD2.5 billion in total. It is reported that USD1.3 billion will be used in the expansion of its plant located in Chihuahua state, which will manufacturer two new diesel engines; the other USD1.2 billion investment will be used to expand the central Guanajuato state-based plant that manufacturers transmissions. Ford’s investment last time was in 2008 with a USD3 billion investment for updating its Cuautitlan plant. According to official industrial statistics, Ford is currently the 4th largest car exporter in Mexico. Mexico has many advantages in the market like a comparatively low labor cost, FTAs with many countries, and proximity to USA, as a result, the investment this time will further facilitate the development of the already booming automotive market in Mexico and may bring more investment projects into Mexico from other major car manufacturers.

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