Production of the Ford Mustang Mach-E at the Cuautitlan Assembly plant in Mexico has steadily ramped up over the past several months, and will continue to do so for the forceable future as well, with the automaker working to build enough EV crossovers to meet demand. Earlier this year, FoMoCo paused Mach-E production as it worked to expand capacity at the Cuautitlan plant, with a goal of building 270k units of the EV crossover in 2024. Now, as Ford prepares to face tough negotiations with the newly-elected leader of the United Auto Workers (UAW) union in the U.S., it has also negotiated a pay increase for workers in Mexico, according to Reuters.
The deal is still pending a vote from workers at the Cuautitlan plant, but once that is complete, it will result in an 8.2 percent pay increase for those employees. Currently, that facility employs around 2,000 people – most of them represented by the National Union of Ford Motor Company Workers, which is part of the Confederation of Mexican Workers (CTM), one of the largest organizations of its kind in Mexico. The union was reportedly seeking pay increases for its workers that more than compensated for inflation.
Meanwhile, The Blue Oval’s recent investment in the Cuautitlan plant figures to help it significantly ramp up Ford Mustang Mach-E production over the coming years. In spite of skyrocketing materials costs, the automaker recently cut Mach-E prices, a trend that figures to continue as it scales production.
“We really didn’t have that much capacity down (at the plant) in Mexico,” Ford Model e chief customer officer Marin Gjaja said back in January. “We were looking ahead as this is the year we’re going to scale (up) the Mustang Mach-E. This is before … Tesla price moves. We had plans and were shutting down the plant, literally right now, in January. That has been our plan all along. So this first principle of scale in automotive is really what has been driving us. Just think about the math.”
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Comments
The workers deserve that pay raise because Ford is making great profits on the Mach-E, and soon will make new EVs at this same plant.
Sure because what else do you do after losing 5 billion on EVs over the last 2 years. Give them a raise.
BEV will be the unfortunate death of FOMOCO.
QC is the worst its been in years, BEV issues with batteries is well documented.
The world doesn’t have the ability to extract all the raw materials to support the suggested transition to BEV.
ICE continues to be the one area FOMOCO can actually do a decent job as long as they fix QC issues ASAP.
While Toyota has the right idea in working on several fronts including EV, hydrogen, and improved ICE and both Mazda and Hyundai have announced discoveries that greatly enhance ICE mileage, Ford is constrained because they don’t have the money to do that. Meanwhile, in 1Q 2023 GM hugely outsold Ford in EV, pulling up second to Tesla. Doesn’t look good for Ford.