Ford to Double Size of Mexican Facility

Ford Motor Co. on Monday announced a $700-million expansion and modernization that will more than double the capacity of its engine plant in Chihuahua.

By the 1994-model year, the factory is scheduled to turn out 500,000 of Ford’s new Zeta-style engines each year for export to the United States and Canada. That will be 20% of Ford’s total production of four-cylinder engines in North America.

“Those engines go into less expensive cars, where the cost of manufacturing is more important,” said Ann Knight, industry analyst at Paine Webber. “This is more important for strategy than 20% would imply, although $700 million is big dough for an engine plant.”