Source: CNBC
Auto giant Ford is planning a new assembly plant south of the U.S.
border, the Wall Street Journal reported Sunday, and will sharply
increase factory output from Mexico just months after signing a labor
deal.
Citing people familiar with the matter, The
Journal reported that Ford will add half a million units of annual
capacity from Mexico starting in 2018, which is double the amount it
built in 2015. The new assembly complex will be based in An Luis Potosi,
and Ford will expand an existing facility near Mexico City, the
publication added.
The move may heighten the debate over cheaper foreign labor. According
to the Bureau of Labor Statistics, Manufacturing labor costs in Mexico
are approximately 1/5 of those
in the United States. In November, Ford signed a new labor contract
that gave factory workers higher wages. A Ford spokesperson did not
immediately return CNBC's request for comment.
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