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Ford to build in Mexico
Ford to build in Mexico
AP POSTED: May 31, 2008
DETROIT (AP) — Ford Motor Co. plans to build its new Fiesta subcompact at a factory near Mexico City for sale in the U.S., the company said Friday.
Ford plans to retool its Cuautitlan Assembly Plant from large-truck to small-car production as it moves to shift its factories from trucks toward more fuel-efficient vehicles, the company said.
The move is a blow to the United Auto Workers union, which last year approved a contract that granted concessions to the automaker. Earlier this year, UAW President Ron Gettelfinger said the union would try to convince Ford that its U.S. plants were competitive enough that the automaker could make money building its smallest cars in the U.S. Currently, all subcompacts sold in the U.S. are built overseas, he said.
Messages seeking comment were left with UAW spokesman Roger Kerson. The union doesn’t represent workers in Mexico.
The Fiesta is critical to Ford’s effort to unify its global operations and sell versions of the same vehicle in markets worldwide. Three- and five-door hatchback versions will go on sale in Europe this fall and China by the end of the year. Other versions, including a four-door sedan, will reach the rest of Asia by 2009. North America will get a four-door version as well as the European hatchback in 2010.
Ford has sold 12 million Fiestas since the vehicle was introduced in 1976. Although it’s a familiar name to customers in Europe, Asia and South America, the Fiesta was only sold in the U.S. from 1978 to 1980.
Ford also said Friday that it plans a new diesel engine line at its at Chihuahua Engine Plant and a new joint venture transmission plant with Getrag in Guanajuato.
The Cuautitlan plant now makes trucks for the Mexican market, ranging from the Ford F-150 pickup to the F-550. The company plans to import trucks from the U.S. in the future to free factory capacity for the new small cars, it said in a statement.
Overall, Ford and its parts suppliers will invest $3 billion in Mexico as part of the Fiesta project, Ford said. About 4,500 Ford jobs should be created at the plants, the company said.
Gettelfinger, in an interview Friday with The Associated Press, said the union wanted to see the Fiesta built in the U.S.
He said automakers could profitably make subcompact ‘‘B-cars’’ in the U.S., especially by running them on assembly lines along with slightly larger vehicles.
‘‘We don’t understand why we can’t compete,’’ he said. ‘‘I truly believe that with the operations set up the way they are, that we can get a B-car in here.’’
He conceded that Mexican factories have a cost advantage, but said the union isn’t interested in a race to the bottom in wages.
The UAW now will focus on making sure companies keep promises made in the national contracts signed last year.
‘‘We have got product commitments other than the Fiesta, and we intend to see to it that they’re fulfilled,’’ he said.
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I just wonder how many cars Toyota builds in the United States compared to the number of cars that Ford builds in the United States, both furnishing jobs for United States Citizens?
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Perhaps it's time to let Mexico be Ford's primary customer. Toyota's are better anyway.
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Just came back from Hope Hull, Al. The little community there is growing. They seem very happy and grateful to produce Hyundai cars there.
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It is already known that the Ford Foundation donates to La Raza every year. Ford really has turned out some crap they call cars and trucks. Let them go, but let them take their citizenship with them. Good ridance, Ford. Go peddle your crap you call transportation to someone else.
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Let me see if I get this correctly - I can purchase a car built in the US or Japan , or I can purchase a car built by mexicans.
:lol: Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha !!!! :lol:
There is truly no way to save this company from itself.
