Ford is clearing up its US production lines to focus on more profitable cars by doubling its production capacity in Mexico, according to a report from The Wall Street Journal.
The three auto-giants from Detroit, General Motors, Ford Motor and Fiat Chrysler Automobiles NV’s, are all rumored to move some of their smaller cars production from North America to Mexico, for cutting some of the labor costs. As expected, they plan to focus on their pricier models with high demand, that bring bigger profits, so pickups and SUVs will remain at their US plants. In January, three Mexican officials confirmed to Reuters that Ford planned to build a new auto facility in the central Mexican state of San Luis Potosi. The new car plant is said to build around 350,000 vehicles annually and the automaker is to spend over 1.5 billion dollars for the entire facility, according to these sources. By building this new factory and expanding a plant in Cuautitlan, Ford would add about 500,000 units of annual capacity, The Wall Street Journal said in a recent report, citing unidentified sources.
It is likely that Ford plans to build the Focus compact in Mexico, as the company said back in November that it would stop making the model at the Wayne, Michigan, factory beginning with 2018. Furthermore, the newspaper said that among the vehicles produced at the Mexican plant would be a hybrid model aimed to compete with Toyota’s green Prius. Ford is also expected to move the production of C-Max from Michigan to Mexico. The automaker produced around 440,000 units last year in Mexico, and its Cuatitlan plant currently builds the Fiesta small car.
Via Automotive News / The Wall Street Journal