Mexican Media Brands
Ford May Compensate Suppliers for Abandoned Mexico Plant
Ford Motor Co. is discussing compensation for suppliers linked to its $1.6 billion assembly plant in San Luis Potosi, Mexico, that was cancelled last week.
Share
Ford Motor Co. is discussing compensation for suppliers linked to its $1.6 billion assembly plant in San Luis Potosi, Mexico, that was cancelled last week.
Ford had planned to begin making next-generation Focus small cars in the factory in 2018. But it scrapped the project after repeated criticism from President-elect Donald Trump about shifting production and jobs from the U.S. to Mexico.
Site prep and structural construction had begun on the factory, Americas President Joe Hinrichs tells a conference in Detroit. The company now plans to build the Focus in one of its existing plants in Mexico.
Hinrichs says the move will save the company $500 million. He adds that the financial impact on suppliers won’t be large because most of them are already established in the region and are serving other manufacturing facilities there.
But analysts say Ford’s abrupt decision fosters an atmosphere of unpredictability about other planned factories in Mexico.
RELATED CONTENT
-
When Automated Production Turning is the Low-Cost Option
For the right parts, or families of parts, an automated CNC turning cell is simply the least expensive way to produce high-quality parts. Here’s why.
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
Cobots: 14 Things You Need to Know
What jobs do cobots do well? How is a cobot programmed? What’s the ROI? We asked these questions and more to four of the leading suppliers of cobots.
