Thread: Ford to invest up to $9.2 bln in Mexico: report

http://news.yahoo.com/s/nm/20060614/bs_ ... NlYwN0bWE-


Ford Motor Co. (NYSE:F - news), which is slashing jobs and closing plants in the United States as it seeks to return its North American operations to profitability, is preparing to invest up to $9.2 billion in Mexico to leverage its low operating costs there, a Michigan newspaper reported on Wednesday.

The Oakland Press, a Detroit-area newspaper, said the investment was detailed in a confidential, 28-page document turned over to it by a Ford employee.

The document, part of which had been prepared for a presentation in early April to officials from the Mexican government, said Ford, the No. 2 U.S. automaker, could invest a total of $9.2 billion in Mexico over a six-year period from 2006 to 2012, according to the newspaper.

Ford spokesman Oscar Suris declined to comment on the report, calling it "speculative."

The newspaper said a second source familiar with Ford operations vouched for the authenticity of the document, "which suggested the automaker's investment could potentially create up to 150,000 jobs in Mexico within the next decade."

"The Way Forward - Mexico (offers an) opportunity to further leverage Ford of Mexico cost advantage and location to reduce corporate fixed costs," the confidential document said.

"We will leverage our global scale like never before and Mexico is a key partner as we're targeting lower fixed costs, better quality and speed to deliver our Way Forward plans," the document said.

Ford, which is struggling with rising costs and declining U.S. market share, currently has two assembly plants and an engine plant in Mexico.

Under Ford's restructuring plan, which is dubbed Way Forward and was first announced in January, the automaker plans to close 14 plants and cut up to 30,000 hourly workers in North America.

Mark Fields, the executive vice president in charge of the North American restructuring effort, said in January the company was looking to build a new low-cost assembly plant in North America.

The document also indicated that Ford expects to increase its purchases of Mexican-made components by 300 percent, while suppliers could increase their investment by $3.6 billion.

Ford, which is hoping to attract incentives from the Mexican government, also said it was prepared to shift some professional engineering and purchasing jobs to Ford of Mexico as part of the expansion plan, according to the document.

It also noted the political sensitivities involved in the announcement of any expansion. Any announcement would have to come after the United Auto Workers convention, which is being held this week in Las Vegas, the newspaper said.

Ford officials, according to one timeline included in the document, also were considering making the announcement before Mexican voters pick a new president on July 2, because it might help boost Felipe Calderon, the conservative ruling party candidate.

Calderon is locked in a very tight race with leftist Andres Manuel Lopez Obrador. The documents suggest postponing any announcement would reduce risk of confrontation with the new government should Calderon lose in July, the Oakland Press said

No more Ford's will be sitting in my driveway.

Doesn't that just IRK you to no end?? Bankrupsey(sp?), lay-offs my butt.

Now I don't know all of who owns who and who meshed with who......but I have a Saturn......is that some product of Ford?

Nope Bird, Saturns are a chevy spin-off. I havent owned a Ford (Fixed Or Repaired Daily) since 68'.

Whew! I was fond of them because ,weren't they the company that the employees bought a part of in order to stay in business. ? I know by now it's probably not the same, like Wal-mart used to be American brands only, but, I hoped it was mostly American. Thanks.....I like my Saturn.

The Volkswagons built in Mexico are pure crap and they are not cheap.

Don't buy cars made in Mexico - there is no incentive to do so.

No Fords in THIS family. Hasn't been for o so many years...they put out too many lemons for too long.

MJ