United States car manufacturer Ford is backing off of its pledge to cancel the plans for building plants in Mexico. Two plants are being built in the central state of Guanajuato and another in the norther city Chihuahua. The plan for the two factories are to make engines and transmissions that will supply Ford factories in the United States, South America, Europe and Asia.
Gabriel Lopez, President and CEO of Ford Mexico, said however that this did not affect two other projects it has under way in the country since 2015, which are scheduled to begin production this year.
Ford is one of several US companies under pressure from the country’s new President Donald Trump.
He has offered inducements to keep some US manufacturers in the United States, and threatened others with punishing tariffs if they go.
Ford has been operating in Mexico for about 90 years. It currently employs around 9,000 workers in Mexico, according to Lopez.
These two facilities will cost about $2.5 billion and employ 3,800 people.