Essay The Ford Motor Assembly Plant

1607 Words May 2nd, 2016 null Page
In 1920, Henry Ford built the first Ford Motor Assembly Plant in Michigan; fast-forward almost a hundred years later to 2016, and Ford has not only expanded outside of the United States, but has made plans to build a second plant in Mexico. The $1.6 billion dollar plant, which will be located in in San Luis Potosi will be built by 2018. Ford announced earlier in April that the second Mexico plant would create roughly 2,800 jobs. Ford also said they would also invest over $3.6 billion dollars to create two new engine and transmission plants to the existing plant and that will create nearly 7,000 additional jobs in Mexico. (Diaz) Ford said that the new plant and the additions to the existing plant will allow the Mexico plants focus on building and manufacturing small compact cars such as the Ford Fiesta, Fusion and the Lincoln MKZ. This is beneficial to Ford since those cars can be made at a lower cost and more profitable in Mexico then they could be if they were made in America. (Alan Diaz) The new production model projects the new plant in Mexico will make roughly 350,000 cars a year, which would double Fords existing production that it is currently produced in Mexico. That means the US plant will be able to focus on building and assembling large trucks and SUVs. (Martinez) While the new of outsourcing many hurt Fords reputation among American’s, the decision to outsource to Mexico has many clear benefits for the company.
Outsourcing is not a new concept, or idea, it has…

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