News, Insights and Best Practices for Manufacturing in Mexico

Ford Invests in Mexico: Expansion in Mexico Enables Expansion in the U.S.

21 Sep 2016

Category: Automotive Manufacturing, Labor & Economics, Manufacturing in Mexico

Last Wednesday, Ford CEO Mark Fields announced the company’s shift of their entire small-car production to Mexico by 2018. Ford’s move of their lowest profitable car, small-cars, to Mexico will help support the company’s entrance into emerging opportunities such as self driving and electric cars. Ford’s decision to open a $1.6M plant in Mexico was one of the company’s first steps to maintaining their profit margin, and an attempt to cover an expected decline in profit for 2017 as their innovative initiatives are likely to prove a big investment.

Throughout the manufacturing shift and innovation opportunities, Ford urges the public that no U.S. jobs will be lost and small-car workers will focus on building new truck and SUV models. CNNMoney states, “Ford has 85,000 U.S. workers, up 50% over the last five years. It currently employs 8,800 people in Mexico, and the new plant will create 2,800 additional jobs there.” Mexico has had an increase in manufacturing over the past decade, which has spurred productivity in the plants and growth for automotive companies.

Automotive manufacturing is one of the fastest growing manufacturing industries in Mexico mainly because of its lower wages for high skilled labor. Mexico’s 40% growth since 2008 also accompanies a 15% growth for the U.S. where automakers are creating jobs and investing millions in U.S. workers and plants. Automotive companies invest in both countries to support economic growth for the continent.

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