June 16 (Bloomberg) -- Ford Motor Co., the second-largest U.S. automaker, will upgrade three Mexican factories over the next several years to expand operations in that country.
Auto assembly plants in Cuautitlan and Hermosillo and an engine plant in Chihuahua will get the upgrades, Ford said on its Web site, without giving any estimates of cost or specific timing. The automaker said it hasn't yet decided where to locate a new, low-cost North American auto plant.
Investing in Mexico may rankle union members in the U.S. Dearborn, Michigan-based Ford plans to cut 30,000 jobs in its home market and close 14 North American factories by 2012 as it loses U.S. sales and market share. The UAW represents only workers in the U.S.
The Oakland Press of Pontiac, Michigan, reported this week that Ford plans to invest $9.2 billion in its operations in Mexico between now and 2012 to build a new plant and boost production of engines and transmissions. The newspaper said it obtained a 28-page company document detailing the plans.
Hermosillo, which opened in 1986 and employs about 1,800 people, produces Ford's mid-sized Fusion, Mercury Milan and Lincoln Zephyr sedans. The Cuautitlan plant, which opened in 1970 and employs 900 people, builds the F-150 and Super Duty pickups and the Ikon small car. Ford started Mexican production in 1925.
Ford's shares fell 12 cents to $6.66 at 1:54 p.m. in New York Stock Exchange composite trading. They have declined 14 percent this year.
`Way Forward'
Ford Executive Vice President Mark Fields said in a January speech in Los Angeles that Ford would emphasize its U.S. roots as it looks to revive its North American operations, which had a pretax loss of $1.6 billion last year. Under a plan called the ``Way Forward,'' the unit is to be profitable by 2008.
The Way Forward plan also called for the construction of a new, low-cost manufacturing plant. The plant may be located in the U.S., Canada, or Mexico, Fields said in today's statement.
Fields, in a speech this week in Washington, criticized automakers based outside the U.S. that run advertisements emphasizing their U.S. plants. He didn't identify any companies. Toyota Motor Corp. and Hyundai Motor Co. have run such ads.
``So, despite all their claims about being `American,' most of the cars and trucks the foreign automakers sell in America aren't actually made in America,'' Fields said in the June 14 speech, according to a copy of his remarks provided by Ford.
To contact the reporter on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net
