Ford to invest $168 million to shift pickup output from Mexico to Ohio plant

Article by Christian A., on March 8, 2014

Ford Motor Co. plans to revive its Avon Lake site in Ohio where it is building the to-be-discontinued Econoline van by making a $168-million investment to shift pickup production there from Mexico early next year. The carmaker is planning to shift production of the F-650 and F-750 medium-duty pickups from its Escobedo site in Mexico, the company said in a statement.

Ford had operated a Mexic0-based joint-venture with Navistar International Corp. -- Blue Diamond Trucking Co. – but is terminating the partnership to fully control of production, design and engineering of its F-series pickups, Joe Hinrichs, Ford’s president of the Americas, told Bloomberg in an interview. The F-series truck line account for most of the carmaker’s, Morgan Stanley has said.

Ford sold 763,402 F-series trucks in 2013, including 8,682 medium- and heavy-duty pickups, reflecting an 18-percent jump from 2012. Ford will roll out later this year an aluminum-bodied F-150 pickup, and redesigned versions of the F-650 and F-750 in early in 2015. “This is a highly profitable vehicle,”said Kristin Dziczek, an analyst with the Center for Automotive Research.

“The bigger the vehicle, the higher the profit, so that makes it less difficult that the labor costs are slightly higher in Ohio than Mexico.” Dziczek noted that Ford now won’t have to share profits with Navistar after its withdrawal from the joint-venture. “It’s so critical to be able to offer our commercial customers everything from an F-150 all the way to an F-750 and to know it’s built by Ford," Hinrichs said.

Topics: ford, investment

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries