(CNBC) – In a move that is sure to draw ire on the presidential campaign trail, Ford on Tuesday announced that it will be adding a new assembly plant in Mexico.
The Detroit automaker said it will invest $1.6 billion into the facility and create 2,800 jobs by 2020, with construction expected to begin this summer.
Joe Hinrichs, president of Ford of the Americas, told CNBC that the new plant does not mean Ford is moving jobs out of the U.S.
“We’re proud to be an American company,” he told CNBC. “We’ve invested $10.2 billion here in the U.S. over the last five years and that commitment won’t change even as we expand around the world.”
The Mexican plant, in San Luis Potosí state, will build small cars that will be exported for sale in the U.S. and other countries, though the automaker has not decided which vehicles will be built there.
The company already has two final assembly plants and one engine plant in Mexico. It has a total of 8,800 employees there, compared with 85,000 in the U.S.
In response to Tuesday’s announcement, Dennis Williams, president of the United Auto Workers, said, “Today’s announcement that Ford is investing in Mexico is a disappointment and very troubling. For every investment in Mexico it means jobs that could have and should have been available right here in the USA.”
Ford’s expansion in Mexico has been expected for months, causing Republican presidential nominee Donald Trump to repeatedly hammer the automaker.
staff