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:

Comments

Recommended

An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 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