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Mexico Tries To Convince Ford To Relocate Operations Following Brazil Closures

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As we reported last week, Ford is ending production in Brazil after a 100+ year relationship with the country, though it will continue to sell and service vehicles there. While this move has understandably drawn the ire of some, Mexico clearly sees it as an opportunity. Mexican Economy Minister Tatiana Clouthier told reporters that officials were working to “make Ford an offer” that will entice the automaker to relocate some of its operations to the North American country.

Clouthier didn’t go into further detail but did acknowledge that Mexico was “flirting” with Ford and suggested that it was sending out feelers for what sort of tax or other incentives the automaker might be seeking in exchange for relocating a portion of its manufacturing operations to Mexico.

Ford has been building vehicles in Mexico for decades now, and currently operates the Ford Chihuahua Engine Plant, Ford Cuautitlan Plant, and Ford Hermosillo Assembly Plant in the country. The Chihuahua plant produces the 6.7L Power Stroke V8 for the Ford Super Duty, while the Cuautitlan Plant produces the Ford Mustang Mach-E, and the Hermosillo plant builds the Ford Bronco Sport, and soon, the Ford Maverick.

Brazil President Jair Bolsonaro criticized Ford’s closures last week and alleged that the automaker was looking to obtain tax breaks and other subsidiaries prior to its departure. “I’m sorry, but I will no longer keep spending your money to support their factories,” Bolsonaro told his supporters. “The factory closed due to competition, there is no more subsidy from us.”

Ford CEO Jim Farley said that the automaker’s decisions to close its Brazilian plants were “necessary actions to create a healthy and sustainable business.” Lyle Watters, President of Ford South America and International Markets Group, said that the automaker “has made significant progress in transforming our operations,” but noted, “the continued unfavorable economic environment and the additional pressure caused by the pandemic have made it clear that much more was needed to create a sustainable and profitable future.”

We’ll have more on this situation as soon as it’s available, so be sure and subscribe to Ford Authority for the latest Ford business news and 24/7 Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. fpvfan

    what if, America had an American car company built in this country, built by this country, built for this country? Just a thought.

    Reply
    1. Ford Owner

      Brazil and Mexico are both American nations.

      Reply
      1. Marcello

        They are really american nations, although the continent is divided into North, Center and South.
        The question most of the United States thinks that America is only their territory and not the entire continent. And that makes room for some geographic issues.

        Reply
  2. gareth

    Ford build lots of stuff in America and most fords that Americans buy now are acualty made in America or North America and ford employees lots of people in America but its a international company not just American company.

    Reply
    1. Me

      THE…UNITED…STATES…OF…AMERICA.

      Not Mexico
      Not Canada

      Reply
      1. Ford Owner

        So how do you call a car made in the United States? You cannot use “American” anymore.

        Reply
      2. Donald

        Yes! Like Detroit Michigan USA… on the side of the world that Ford started it all. Closed many factories here to take to suburban USA. Time to come back home!

        Reply
  3. Marcello

    I don’t see much sense in relocating production in Mexico.
    The cars produced in Brazil were compact vehicles, precisely models that Ford gave up in favor of SUV, crossover and pickup.
    One of the reasons for closing the factory was precisely the low sales of its models compared to Chevrolet, VW, Fiat and Hyundai. The volume did not make the factory profitable, even though Brazil is the largest market in the region.
    Production in Mexico would only make sense if they were going to sell the models in the USA, which is probably not a possibility. In addition, Ford already produces equivalent models at its plants in Europe and Asia, so there would be no big market to export to.

    Reply
  4. Don Sherman

    Hey here’s a better idea… move them back to USA… lots of vacant space available for immediate occupancy right back here in Michigan. Oh but then there is the la or rate issue and then the UAW… never mind! LoL

    Reply
    1. Ford Owner

      That sounds nice but you have to convince all of your friends and family to buy Ford, not the cheap imports from Asia and Europe.

      Reply
      1. Marcello

        Asian and European imports can be cheap, as you said, but they also have a much higher quality and reputation in some cases.

        Reply
  5. Donald

    If your from here you already know Ford loyalty runs high in D town. Too bad the company is so hell bent on expanding the empire to places like India, China where they don’t give a crap at all about Ford. That being said… they are finally realizing this and pulling up stakes on those disasters! Bring it home.

    Reply

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