In a move that would replace almost half of its production capacity in the U.S., Ford Motor Co. is considering a $9 billion investment in Mexico, according to reports from news agency AFP.
While such a move would be staunchly opposed by the United Auto Workers union, the investment would allow Ford to double its current production in Mexico to 850,000 vehicles a year, and could be made over the next six years, AFP said, citing internal documents it obtained.
According to the documents, Ford's investment would create about 150,000 jobs, cutting Mexico's unemployment by a stunning 15 percent. The investment would represent between 7 to 9 percent of the total annual foreign direct investment in Mexico and would also generate exports valued at $18 billion. The documents obtained by AFP also indicated Ford expects to increase its purchases of Mexican-made components by 300 percent, while suppliers could increase their investment by $3.6 billion.