4,500 Fod Jobs Were Just Delivered To Mexico - By Ford Execs Themselves!

YIKES! Apparently Ford

"is concerned about the slowing US economy, and he may cut car production as a result."

So the answer instead is to cut production here and then ramp it up in Mexico? Excuse me, but wouldn't common sense indicate that removing jobs from our country, then bringing in foreign imports that will undercut the price of American made vehicles would further damage our already fragile economy? Seems like we did this dance once, and we're still paying for it. Oh, that's right: Ford, they had a better idea. Riiigght.... Lordy, they might as well take all our apple pie with em when they go. I doubt Henry, in his wildest nightmare, would ever have agreed to do this...

Ford to open new plant in Mexico

The investment was announced at the presidential compound in Mexico City

US giant Ford is to invest $3bn (£1.5bn) in a new car plant in Mexico, the biggest investment in the country's manufacturing sector.

The move is a blow to American car workers who had hoped the factory would be built in the United States.

Ford has lost more than $15bn (£7.5bn) over the past two years and says the new facility is crucial to its future.

Mexican President Felipe Calderon hailed the announcement as a "turning point" for his country.

The new factory, and other changes to Ford's Mexican operations, are likely to create an estimated 4,500 jobs in Mexico, where car workers earn substantially less than their American counterparts.

Mr Calderon made the announcement with Ford president Alan Mullaly at the presidential compound in Mexico City on Friday.

"We want Mexico to be an automotive country, one that is competitive and with the most advantages so that the worldwide automotive industry will establish itself here," Mr Calderon said.

Mr Mullaly said: "We are convinced the geographic location as well as Mexico's highly qualified labour force and economic stability make this decision the right one for our business."

Environmental concerns

The factory will build Ford's new Fiesta sub-compact car, which is the company's attempt to shift towards the fast-growing market for smaller, more fuel-efficient cars.

It will be located near Mexico City and the plant is expected to start delivering the Fiesta to the US market in 2010.

The BBC's Duncan Kennedy in Mexico City says Ford, the second largest car manufacturer in the US, is being hit by the slowdown in consumer spending and soaring oil prices.

Drivers are moving away from Ford's traditional stable of bigger trucks and Sports Utility Vehicles because of rising fuel prices, plummeting house prices and concerns about the environment, he says.

The decision to invest in Mexico will be a blow to the United Auto Workers union, which reached a cost-cutting agreement with Ford in a bid to make US plants more competitive.

The company had also hoped its programme of slashing cut-price vehicles to car hire companies would help ease its financial woes.

But earlier this month, Ford announced it was abandoning its goal of making its loss-making North American business profitable next year.

Ford's plans in Mexico also include moving one of its factories from large truck to small car production, and opening a new diesel engine line at another plant.

US economy a worry for Ford boss

Ford suffered falling US sales in 2007

The chief executive of motor giant Ford has said he is concerned about the slowing US economy, and he may cut car production as a result.

Alan Mulally said the slowdown was hitting sales of homes, and other large items such as cars.

Last year Ford's sales in the US fell nearly 3% to 16.14 million vehicles, their lowest since 1998 and down from 16.55 million in 2006.

However, Ford saw sales in China rise by 30% to 216,325 vehicles.

The sales rise in China was mainly boosted by sales of the mid-size Ford Focus car, which saw its sales jump by 57%.

'Tougher'

Mr Mulally's warning about the US market came ahead of the North American International Auto Show.

The carmaker is in the middle of a restructuring programme - brought in after large losses in 2006 - which it hopes will bring its North American operations back to profitability to 2009.

"For us, any slowdown in the economy - the housing industry, financing of vehicles, tightening of credit, housing starts - it puts a lot of pressure on consumer confidence to big-ticket items, " Mr Mulally said.

"Clearly, it makes it tougher. We took the actions starting a year and a half ago to deal with this."