Ford Plans to Double Capacity in Mexico

Ford Motor Co.’s plans to open a 350,000-unit assembly plant in San Luis Potosi, Mexico, in 2018 will be joined by a 150,000-unit expansion of its factory in Cuautitlan, sources tell The Wall Street Journal.

Reuters reported in mid-January about Ford’s plans for the new assembly plant, which is expected to cost about $1.5 billion. The news service theorizes the expansion will enable Ford to move production of its next-generation Focus small cars from Michigan to Mexico.

The Journal says the two new projects will enable Ford to build several models, including an unspecified hybrid vehicle, in the country. Ford currently makes Fiesta minicars in Cuautitlan and Fusion and Lincoln MKZ sedans in Hermosillo. Ford made 433,000 vehicles in Mexico last year, according to the newspaper.

The company also builds 4-cylinder gasoline and 4.4-liter and 6.7-liter diesels in Chihuahua. Last April Ford said it will invest $2.5 billion in Mexico to add transmission capacity and a second engine plant in Chihuahua.

LMC Automotive predicts Mexico’s combined vehicle production will rise to 5.2 million vehicles in 2019 from 3.4 million vehicles in 2015. U.S. carmakers are shifting some of their small-car production there as they concentrate on building more profitable trucks, crossovers and SUVs in the U.S.