Saturday 18 April 2015

Ford to make new engine in Mexico

Ford is investing US$2.5 billion in new engine and transmission plants in the Mexican states of Chihuahua and Guanajuato

About 3,800 direct jobs will be generated through the three projects – a new engine plant in Chihuahua, expansion of Ford’s I4 gasoline and diesel engine lines in Chihuahua and a new transmission plant – Ford’s first in Mexico – in Guanajuato

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 US, Canada, South America and the Asia-Pacific region, supporting the company’s growing small car line-up.

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 I4 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 long-time partner Getrag. The plant 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 chief executive officer. “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 an engineering centre in Mexico that employs over 1,100 engineers who support global projects. 

The investment is part of the company’s One Ford plan, aimed at boosting the company’s global competitiveness. The news coincides with Ford’s 90th year in Mexico.

Ford of Mexico began its operations in 1925 and has stamping and assembly plants in Hermosillo and Cuautitlan, as well as Engine Plants I and II in Chihuahua. The company’s headquarters are in Mexico City.

In Mexico, the car company manufactures Ford Fiesta, Ford Fusion and Lincoln MKZ brands; these include hybrid versions of the last two.

Manufacturing also incorporates machining and assembly of Duratec I4 (2- and 2.5-litre) gasoline engines as well as the 6.7-litre PowerStroke and 4.4-litre V8 diesel engines, both of which have compacted graphite iron (CGI) cylinder blocks supplied by Tupy SA.

According to press reports in Mexico, this new investment will yield new three- and four-cylinder engines with a plant capacity of up to 700,000 engines a year and is expected to allow Ford’s Chihuahua Engine Plant to produce up to one million engines a year.

Ford is reputed to produce 8 per cent of all vehicles sold worldwide and is the fifth producer of vehicles in Mexico.

At present Mexico’s automotive industry generates 2.8 per cent of the country’s GDP with Mexico rated as the fourth largest exporter of light vehicles

“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.”

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