Ford To Start Futura Production In Mexico In 2005

MEXICO CITY October 6, 2003; Dow Jones reported that Ford Motor Co. said Monday that it will start producing its Futura model in Hermosillo, Mexico in 2005.

Total investment for the Futura project over the coming years will be in the neighborhood of $1 billion, not necessarily all of which will be spent in Mexico, said Karen Shaughnessy, spokeswoman for Ford.

About 35 parts suppliers will be setting up shop near the plant, bringing additional investment and jobs to the area, Ford said in a press release.

The company did not break down the value of planned investments from parts suppliers.

Earlier Monday, Mexico's Economy Ministry said that the total investment for the project, which includes the expansion of an existing stamping and assembly plant, was worth $1.6 billion and would create 5,000 jobs. Ford said that production of the Futura in Hermosillo would allow for up to 2,000 new jobs at the plant alone.

Ford broke ground on the expansion project Monday, making way for production of about 300,000 Futuras per year, the company said. Other North American plants have also been reportedly vying to produce the vehicle.

The investment "is a show of confidence in the stability and solidness of the Mexican economy," the ministry said in a press release.

Mexico is the 11th biggest auto manufacturer in the world, while the industry represents more than 22% of the country's manufacturing output.

In addition to the Ford commitment, Mexico has managed to attract $930 million in new investments this year from German car manufacturer Volkswagen AG and Japanese auto makers Toyota Motor Corp. and Nissan Motor Co. Ltd