Ford said Tuesday that it plans to build a $1.6 billion car manufacturing plant in Mexico, a project speculated to create around 2,800 jobs by 2020.
Ford said it will begin building the facility this summer in San Luis Potosi, a state located in North-Central Mexico, according to a report by CNBC.
It’s known that Ford will make small cars at the facility, but the company hasn’t yet indicated which specific type of car will be made there.
Once built, the vehicles will be sold in the U.S. and other countries.
The United Auto Workers Union is displeased by Ford’s plans, as made evident by a statement made by its president, Dennis Williams.
“Today’s announcement that Ford is investing in Mexico is a disappointment and very troubling,” Williams said. “For every investment in Mexico it means jobs that could have and should have been available right here in the USA.”
Joseph Hinrichs, president of Ford of the Americas, told CNBC that creation of the plant doesn’t mean that jobs will be taken away from the U.S.
“We’re proud to be an American company,” Hinrichs said in the interview. “We’ve invested $10.2 billion here in the U.S. over the last five years and that commitment won’t change even as we expand around the world.”