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Ford might invest heavily in Mexico
Ford Motor is struggling to compete against the Japanese players in their domestic market and is now cutting jobs and closing down loss making plants to get back to profitability. However, the company is now preparing to invest up to $9.2 billion in Mexico to take advantage of its low operating costs.
This was published in a report by Oakland Press, which cited from a confidential, 28-page document it received from a Ford employee. The paper claimed that this paper was prepared by the company to present to the Mexican government and it includes information on Ford’s plans to invest up to $9.2 billion in Mexico over a six-year period from 2006 to 2012.
Ford has responded to this rumor by calling it a speculation.
The document said: “The Way Forward - Mexico (offers an) opportunity to further leverage Ford of Mexico cost advantage and location to reduce corporate fixed costs. 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.”