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Ford Building Engine, Transmission Plants in Mexico

May 04, 2015

Ford has announced a $2.5 billion investment in two new facilities building a new generation of engines and transmissions in the states of Chihuahua and Guanjuato, Mexico, respectively.

The investment, which comes during the celebration of Ford’s 90th anniversary in the country, will bring 3,800 direct new jobs plus additional indirect jobs to Mexico. Ford officials announced the investment during a ceremony with Mexican President Enrique Peña Nieto and other members of the country’s Federal Government.

“Ford is making a significant commitment to our business in Mexico with investment in two new facilities, while aiming to make our vehicles even more fuel-efficient with a new generation of engines and transmissions our team in Mexico will build,” said Joe Hinrichs, Ford’s president of The Americas. “These new engines and transmissions will help deliver even better driving experiences and fuel economy gains for customers around the world.”

The new engine facility is being built within Ford’s Chihuahua Engine Plant, where the company will produce a new gasoline-powered engine. This $1.1 billion investment and 1,300 new jobs will allow Ford to export engines to the U.S., Canada, South America, and the Asia-Pacific region, supporting the company’s growing small car lineup.

An additional $200 million dollar investment as well as the creation of 500 more new jobs is tied to the expansion of Ford’s current I-4 and Diesel engines production in Chihuahua. As a result of these investments, the Ford Engine Plant in Chihuahua will become the biggest engine plant in Mexico.

In addition, Ford is building a new transmission plant within the premises of transmission supplier and longtime partner Getrag, which is based in the City of Irapuato in the State of Guanajuato. This $1.2 billion investment brings approximately 2,000 new jobs.

This new plant – Ford’s first transmission facility in Mexico – will produce two all-new automatic transmissions for key products primarily in South America, Europe, and Asia Pacific as well as other North American markets, according to the automaker.

“Today’s announcement is an important milestone in Ford’s 90-year history in Mexico,” said Gabriel Lopez, Ford of Mexico’s president and CEO. “Currently within Ford, Mexico is the fourth vehicle producer, the fourth largest engine producer and is the second largest nation supplying Ford’s global manufacturing facilities. We look forward to delivering even more great products, including new engines and now transmissions, to serve Ford customers around the world.”

Ford has 11,300 employees in Mexico. The Ford Fiesta, Fusion, and Lincoln MKZ as well as the hybrid versions of both are manufactured in Mexico. Ford also has established an Engineering Center in Mexico, which employs more than 1,100 engineers who support global projects, according to the automaker.

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