According to a report from The Detroit News, Ford will build a new assembly plant in Mexico to increase its production by 350,000 cars annually. The automaker is expected to invest $1.5 billion into the new plant, which will be built in the state of San Luis Potosi.

Ford spokeswoman Kelli Felker said in a statement that the automaker will “not comment on speculation,” but Ford is expected to announce plans for the Mexico plant in the first quarter of this year. Along with the construction of an entirely new plant, the automaker will also expand its existing operations to help increase overall production.

Ford will build two new engine and transmission plants in Mexico with another $2.5 billion investment, creating 3,800 jobs. The automaker also has plans to spend an additional $1.1 billion to construct an engine facility on its Chihuahua Engine Plant campus. This expansion will create a new gas-powered engine and will add another 1,300 new jobs.

It’s been previously reported that Ford will move production of the Focus and C-Max away from the Michigan Assembly Plant to save money. It’s been suspected that at least the Focus will head to Mexico.

As of now, Ford executives have said that there are no plans to build new plants in the U.S., with its most recent creation being the Dearborn Truck Plant back in 2004. However, Ford isn’t the only automaker to move production to Mexico; General Motors and Toyota have announced large investments in Mexican plants that will soon being construction.

Source: Detroit News

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Source: Motor Trend