Ford Motor (F) said Tuesday it will invest $1.6 billion to build a new plant in San Luis PotosÃ, Mexico to build small cars, making it the latest automaker to expand its presence there.
Ford's investment in Mexico will create more than 2,800 jobs by 2020, delivering a blow to the UAW, which pushed for higher wages in its contract talks with the automaker last year. The announcement also comes amid a presidential election where the the leading Republican candidate, Donald Trump, has publicly pressured Ford to drop its plans to expand in Mexico.
Ford said today it remains committed to investing in the U.S. and adding jobs in America even as it expands its presence in Mexico.
"We have to make decisions on a global scale because we compete globally," Joe Hinrichs, Ford's vice president and president of the America's told the Free Press. "But lets be clear: We are a proud American company and the majority of our investment happens here in the U.S."