Posted on 06/14/2006 4:39:36 PM PDT by Las Vegas Dave
The Ford Motor Co. is studying a $9.2 billion investment in Mexico over the next six years. The mega-investment would be structured as part of the sweeping Way Forward turnaround plan that the auto giant kicked off back in January in a bid to reverse multi-billion-dollar North American losses. The investment estimates were included in a secret document prepared by Ford of Mexico and obtained by a member of TheCarConnection.com team.
"The Way Forward - Mexico (offers an) opportunity to further leverage Ford of Mexico cost advantage and location to reduce corporate fixed costs. Mexico is ready - fast and reliable solution and an established organization with proven capabilities to build from," the document said.
The documents also indicated that Ford expects to increase its purchases of Mexican-made components by 300 percent, while the automaker's 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. "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 documents said.
The building blocks for the Way Forward - Mexico plan include expanding Ford's manufacturing footprint in the country by revamping an old assembly plant in Cuautitlan, Mexico . Located near Mexico City , some analysts thought that Ford might be prepared to close the facility as part of the Way Forward's sharp production cutbacks. In addition, Ford also would construct a new green field plant in Mexico and substantially increase its production of engines and transmissions at a powertrain plant it already operates in that country, according to the documents.
Ford's January announcement called for the closing of 14 parts and assembly plants and the elimination of as many as 30,000 blue and white-collar jobs. But the automaker also said it would add a new, state-of-the-art assembly line somewhere in North America. The documents that have leaked out suggest that Mexico may be the winner in that project.
Journalists hoping to get some insight into the reported Mexican plan came away disappointed following an appearance by Mark Fields, president of Ford's American operations, on Wednesday. During a speech in Washington , D.C. , Fields dodged the issue entirely. Later, a spokesman tersely stated that "We are not commenting on speculation."
During his speech, Fields did play up the "Made-in-America" theme, hoping to counter his Asian rivals, who've been promoting the number of new plants they've opened in the U.S. in recent years. It's become a rallying cry at the troubled, number two automaker. Fields has been demanding that his product development team start turning out more cutting-edge products, an approach he dubbed, "Red, White and Bold."
Ford has been criticized of late by analysts, investors and journalists alike for not offering more details of turnaround plan. The pressure has increased since the automaker disclosed it had lost $1.2 billion in the first quarter. Meanwhile, the company's stock has languished and rating services are threatening to cut Ford credit rating - already in the junk bond category - yet again.
Expect Detroit and Michigan to become even more of a vast wasteland. At least the Japanese build cars in America!
Hecho En Mexico
It will take some major new investment to keep either Ford or GM in the business much longer. Can they swing enough credit to get it done?
And Hyundai(Korea) and Mercedes (Germany).
Buh-Bye, UAW!
And if Mexico goes sour (i.e., the UAW goes down there to organize), the next stop for Ford is China.
No U.S. jobs going south.
No illegal workers in this country.
No U.S. jobs going south.
No illegal workers in this country.
No U.S. jobs going south.
No illegal workers in this country.
No U.S. jobs going south.
No illegal workers in this country.
No U.S. jobs going south.
Don't like Ford? Buy Citroen.
--Le Corbusier
And replace them with multi-billion-dollar Central American losses.
Just another push for the Midwest in the direction you mentioned. Sad.
Thank goodness for the Japanese building cars in America!
when I buy a new car , I'm buying one made on miércoles.
Soon coming to a neighborhood near you...
< humor > http://www.elcarroconexion.com/Pruebas/Sedanes_y_Coupes/2006_Ford_Five_Hundred.S1092.A9930.html < /humor >
Will he find any employees in Mexico or will he have to import them from north of the border?
As long as they're not state control companies in a socialist country, I think they're free to move wherever they want to.
What's it to you?
Automobile plants are now "state of the art", and almost fully automated, so your typical Mexican with limited skills is all FORD needs.
LOL - Americans, doing the jobs that Mexicans aren't around to do.
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