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Report: Ford to double production in Mexico


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http://www.freep.com/story/money/cars/ford/2016/02/08/report-ford-double-production-mexico/80006638/

 

http://www.wsj.com/articles/ford-to-more-than-double-mexico-production-capacity-in-2018-1454857923

 

 

Ford is planning to double its vehicle production in Mexico by 2018 as it builds a new plant and expands an existing plant, according to a report in the Wall Street Journal.

News of Ford's expansion plans come just months after the UAW negotiated a more expensive labor contract with the Detroit Three.

Ford, along with nearly all other automakers, have been expanding rapidly in Mexico in recent years to capitalize on the country's lower labor rates, efficient port and rail system and free trade agreements.

In June, Ford confirmed plans to end production of the Ford Focus and Ford C-Max at Michigan Assembly in Wayne in 2018 and move production of those cars outside of the country. Ford has not said it will make those cars in Mexico but few auto observers think the automaker would move production to Canada.

The Journal said Ford plans to add 500,000 units of annual capacity in Mexico starting in 2018, which is double the amount it built in 2015. Citing people familiar with the matter, the Journal said Ford's new assembly complex will be based in San Luis Potosi. Ford also plans to expand an existing plant in Cuautitlán.

 

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Anyone who did not see this coming is out of touch.

 

I agree.

 

My concerns.....

 

Is this additional volume needed long term?

How does fit in with the Ford's Global footprint?

Will ford Source more FOE vehicles from mexico?

How does moving the dedicated HEV from the US to mexico affect it's viability? it makes government and some institutional sales impossible.

what does this do to the security of Ford's US manufacturing base?

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Don't complain that Ford isn't growing the business enough then question whether they need additional volume. Pick one or the other please.

 

Stop.

 

false dilemma (also called false dichotomy, false binary, black-and-white thinking, bifurcation, denying a conjunct, the either–or fallacy, fallacy of exhaustive hypotheses, the fallacy of false choice, or the fallacy of the false alternative) is a type of informal fallacy that involves a situation in which only limited alternatives are considered, when in fact there is at least one additional option.

 

500,000 units a 16% increase in capacity, does ford need that much? or is it a case of Ford reducing Capacity in the US while increasing it in mexico.

 

The market has grown by 6% in 2015, is ford expecting sales to continue to grow beyond 2018?

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How can you possibly answer that question without knowing exactly which products are going there and what is backfilling at MAP and the plans for the other plants?

 

It's pointless to argue about that without all the other information, so let's keep this discussion to product plans and impacts, not business strategy.

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This has been discussed previously.

 

Low cost small vehicles to Mexico. Fat margined trucks and SUVS in US and Canada.

 

I get that, but Ford doesn't sell 500,000 small cars in north america, right now what is changing in the future to make this a reality?

 

What happens when the oil prices go up and truck sales normalize?

 

This should be good thing for Ford if they can maintain their balance and flexibility Gas will not be $1.50 in 2018.

 

 

 

It's pointless to argue about that without all the other information, so let's keep this discussion to product plans and impacts, not business strategy.

 

it is only an argument if you make it one, agree to disagree and stop locking threads when I am not directly replying to you.

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I get that, but Ford doesn't sell 500,000 small cars in north america, right now what is changing in the future to make this a reality?

 

What happens when the oil prices go up and truck sales normalize?

 

This should be good thing for Ford if they can maintain their balance and flexibility Gas will not be $1.50 in 2018.

 

 

 

it is only an argument if you make it one, agree to disagree and stop locking threads when I am not directly replying to you.

 

It's likely going to include the EcoSport as well as the new dedicated hybrid/electric platform vehicles, so that's part of the increase.

 

Interesting thought: We are pretty sure that MAP is going to be retooled for the Ranger/Bronco/others. Would it be possible to make it flexible enough to also server as an overflow plant for F150 production if the need arises? How close to capacity are KCAP and DTP running?

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I get that, but Ford doesn't sell 500,000 small cars in north america, right now what is changing in the future to make this a reality?

 

What happens when the oil prices go up and truck sales normalize?

 

You answered your own question with your next statement .

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agree to disagree and stop locking threads when I am not directly replying to you.

 

We're not going to have endless debates with circular arguments especially when your arguments are illogical and contradicted by facts or they're based on sheer speculation.

In this case without having any other information about what is happening with U.S. production or what exactly is going to Mexico outside of Focus it's impossible to have a reasonable discussion about whether it makes sense or not.

 

And we (as in the 5 moderators, not just me and RJ) have decided that we're not going to lock any more threads - we're just going to lock you if you continue to instigate these pointless neverending arguments.

 

As for not minding my own business when you're not replying to me directly, that's called moderating.

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It's likely going to include the EcoSport as well as the new dedicated hybrid/electric platform vehicles, so that's part of the increase.

 

Interesting thought: We are pretty sure that MAP is going to be retooled for the Ranger/Bronco/others. Would it be possible to make it flexible enough to also server as an overflow plant for F150 production if the need arises? How close to capacity are KCAP and DTP running?

 

These plants in a changeover constrained year built 626,120 new model trucks plus 22,449 of the old model. A lot of production was lost at KCAP for change over and ramp up. They also lost production due to frame shortages. I am sure they can build over 700,000 if they have the parts.

The HD plant built 313,835, which are part of F-series numbers. (numbers are from Automotive News) The three plants together can build over 80,000 per month. They beat that for 2015. Kentucky Truck is changing to add capacity and Ohio Assembly is picking up some HD production.

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We're not going to have endless debates with circular arguments especially when your arguments are illogical and contradicted by facts or they're based on sheer speculation.

In this case without having any other information about what is happening with U.S. production or what exactly is going to Mexico outside of Focus it's impossible to have a reasonable discussion about whether it makes sense or not.

 

And we (as in the 5 moderators, not just me and RJ) have decided that we're not going to lock any more threads - we're just going to lock you if you continue to instigate these pointless neverending arguments.

 

As for not minding my own business when you're not replying to me directly, that's called moderating.

 

If there is a complaint about My Reply by the person I am Replying to, I get it, but if there is a reasonable civilized dialog I.E. back forth of ideas what is there to moderate?

 

Other than you personally don't like what I am saying and just want me to be quiet.

 

You cannot point out what rules I have broken, it's literally like You are making this up as you go along.

 

Its poor moderating, overbearing and simply wrong.

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Even when gas was 4.00 a gallon, Ford never sold 500,000 small cars.

 

Wait, aren't you saying that Ford is not showing you their investment and that Ford needs more production. So, Ford shows you an investment and are working to produce more product, and then you question it. Am I confused or just missing something?

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Also Mexico may be building cars for export all over the world, not just North America.

 

 

Mexico has made it a priority to sign free-trade agreements with many, many countries (all of the E.U.). That’s a large part of the attraction in building new plants in Mexico, not just low wages.

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If there is a complaint about My Reply by the person I am Replying to, I get it, but if there is a reasonable civilized dialog I.E. back forth of ideas what is there to moderate?

 

Other than you personally don't like what I am saying and just want me to be quiet.

 

You cannot point out what rules I have broken, it's literally like You are making this up as you go along.

 

Its poor moderating, overbearing and simply wrong.

 

Reasonable, civilized dialogue is never a problem unless it gets repeated over and over and over with no end in sight.

 

What does it harm? There are hundreds if not thousands of other people who read the forums and they don't want to read all the bickering and back and forth arguing.

It makes people stop reading the forums. This was pointed out a few months ago, and rightly so. As a result we added 2 more moderators so it won't be a personal thing between you, me or RJ.

 

All we're asking is don't continuously argue about something where the facts are not known or when your point has been refuted with facts - make your point, agree to disagree if necessary and move on.

It's not that difficult.

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Discuss the topic please, not the moderators.

 

You cannot point out what rules I have broken, it's literally like You are making this up as you go along.

 

http://www.blueovalforums.com/forums/index.php?/forum-35/announcement-19-site-rules/

 

 

This is not the forum where you should be looking for a "show-me-the-rule" discussion to have any rightful place. This forum does not work that way. The staff is far more concerned with maintaining the spirit of the community rather than the letter of any law. If any member chooses not to live within that broad spectrum, it is the staff's job to first remind -- either publicly, privately or both at the the staffer's discretion -- and guide them back onto an acceptable path. If transgressions continue, moderators and admins will usually graduate first to formal warnings, followed by formal infractions which increase in severity. Again at the discretion of the staff. However, should a moderator or administrator decide to go straight to severe sanctions and skip the intermediate steps, that is also a reserved prerogative.

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First of all, 500k units is not one assembly plant, it's two. I haven't seen anyone propose that Ford is planning on building two plants in Mexico.

 

Secondly, nobody knows anything at this point. So the speculation can either be matey or cassandra-ish.

 

The moderators--and the board in general--have made it clear that they don't like cassandra-ish speculation. Therefore, speculation which infers--in the absence of any real information--that Ford is screwing up royal (our inference of your inference) is not welcome. Insistence that Ford is in the process of destroying themselves is doubly unwelcome. And--as one may conclude from the opening posts of the long-lived "mlhm" thread--likely incorrect.

 

This is a private club. Nobody has a right to due process. We are interested in comity, collegiality and informed discussion. We are not interested in people who angrily restate the same premises in the mistaken belief that sarcastic repetition is persuasive.

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