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North America:Ford to build Futura in Mexico

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#1 ·
By Gail Kachadourian
Automotive News / October 06, 2003

Ford Motor Co. will build the 2006 Ford Futura sedan at its Hermosillo plant in Sonora, Mexico, the automaker said Monday. Production will start in 2005.

The Hermosillo plant produces the Focus ZX3, ZX5 and SVT. Ford has not decided if production of those vehicles will have to be moved, a spokeswoman said.

An expansion of Hermosillo will give the plant a maximum capacity of 300,000 vehicles annually. Ford said it could add as many as 2,000 employees.

Hermosillo will be able to build Lincoln and Mercury models off the Futura platform. Ford would not reveal timing on those models.

The automaker is installing its next-generation flexible manufacturing system at the plant. The system allows Ford to build as many as eight different models off of two platforms.

Ford also will create a 1.75 million square-foot, on-site supplier park for as many as 19 Tier 1 suppliers. Among the suppliers already chosen are Lear Corp., Faurecia and Magna Cosma International.

In addition to those suppliers, about 16 Mexican suppliers also have committed to make investments in their operations to supply the Futura.

The Futura is based on the Madza6 platform. That platform will serve as a base for as many as 10 new vehicles across the Ford, Lincoln and Mercury brands in the next several years, the company said. Total program investment, including equipment and platform development, is estimated to be about $1 billion for all the vehicles, which will represent 800,000 units of volume.

The Futura will be sold in Mexico, Canada and the United States.
 
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#2 ·
Mexico to build new Futuras

Ford's move to expand Hermosillo plant rankles UAW; platform underpins 10 vehicles

By Christine Tierney / The Detroit News

DETROIT -- Ford Motor Co. confirmed Monday that it would build the new, mid-sized Ford Futura sedan in Mexico in 2005 after expanding its factory in the northern town of Hermosillo and equipping it with modern flexible-manufacturing technology.

The decision to build the new American family car in Mexico has rankled some United Auto Workers officials who said the cars could have been built at Ford's assembly plant in Atlanta.

The Futura, based on a modified design of the Mazda6 sedan, will be the first product coming off a platform that will serve as the underpinnings of 10 new Ford, Lincoln and Mercury vehicles. Ford is investing $1 billion in the project, which is expected to generate 800,000 vehicle sales annually within a few years.

With the project Ford hopes to halt its slide in the North American car market. So far this year, sales of its middle-market cars have slipped more than 10 percent in the United States, while Toyota Motor Co. and Honda Motor Co.p. have boosted sales.

At the same time, Ford is updating its manufacturing plants to cut costs and respond faster to consumer shifts in the market.

"Toyota and Honda have been under that kind of regime for decades," said Michael Robinet, vice president of global forecast services at Farmington Hills-based CSM Worldwide. "Of the Big Three, GM was the first, and Chrysler and Ford are finally catching up."

In Hermosillo, Mexican President Vicente Fox was on hand to welcome the new investment, which could create as many as 2,000 new jobs at the assembly and stamping plant. It now employs 2,400 workers building Focus hatchbacks.

"The Hermosillo plant has a reputation as a high-quality, efficient facility, and with the addition of the Futura, it will be a leader in flexible manufacturing," Ford President Nick Scheele said.

Ford's decision to build the Futura in Mexico, first reported by the Detroit News on Aug. 18, has raised concerns about the prospects for its Atlanta factory. It assembles Ford's current contenders in the mid-sized car market, the Ford Taurus and Mercury Sable.

The two models will still be in production when the Futura is launched. But the newer car -- slotted between the Focus compact and the Ford 500 sedan hitting the market next year -- will eventually replace them.

Ford has not stated its intentions for the Atlanta plant. But Ford spokeswoman Karen Shaughnessy said: "We're interested in continuing Ford's presence there."

Robinet said he expects the Atlanta factory will eventually produce some of the 10 new vehicles off the same basic chassis.

"Our current assumption is that Hermosillo and Atlanta will likely be building vehicles from the same basic family, but offering different body styles," he said.

Ford's van plant in Oakville, Ontario, also is a candidate to build sport wagons derived from the new vehicle.

Meanwhile, Hermosillo will have the capability to produce future Lincoln and Mercury models off the Futura platform, after the installation of Ford's next-generation flexible manufacturing system.

An updated version of a system in place at Ford's European plants, the newer system will allow Ford to build up to eight different models off two platforms at a single plant.

The company has fitted two of its 21 North American plants with this flex system, and expects 75 percent of its North American plants to be flexible by 2010.
 
#3 ·
Ford targets $1bn for new Mexican plans
by Financial Times

Reuters, Mexico City

Ford Motor Company will spend $1bn on a new line of vehicles derived from its Ford Futura sedan, set to be built in Mexico in 2005, said company and government officials on Monday, reports Reuters from Mexico City.


Ford plans to start producing the Futura mid-size sedan in 2005 at the Hermosillo plant in the northern state of Sonora.

The Futura - an important part of Ford's turnround plan aimed at producing $7bn in annual pre-tax profits by mid-decade - will be the basis for at least 10 new Ford, Lincoln and Mercury models over the next several years, accounting for up to 800,000 vehicles a year.

"Total programme investment, including platform development, will be in the range of $1bn," said Ford. Maximum capacity of the plant will be 300,000 vehicles with production levels based on demand.

"The Futura is the first [manifestation] of a vehicle platform that will form the basis for up to 10 new products and 800,000 units of volume across the Ford, Lincoln and Mercury brands in the next several years," it added.

The world's second-largest automaker sends about 80 per cent of its Mexican production to the US. Mexico ranks tenth worldwide among vehicle-producing countries and is the biggest autoparts maker in Latin America.

During the weekend, President Vicente Fox's office said Ford investment in the Hermosillo stamping and assembly plant would be about $1.6bn.

The Hermosillo project also includes the construction of an industrial park on site for as many as 19 local suppliers, Ford said.

Company sources in Detroit said Ford expects to produce 150,000 vehicles at its Mexican plants this year compared with 185,874 units in 2002.

Since 1994, when the North American Free Trade Agreement between the US, Canada and Mexico was implemented, Ford's Mexican production has never fallen below 213,000 vehicles.

But Eduardo Loustaunaud, a spokesman at Ford de Mexico workers' union, said auto assembly could fall further in 2004 due to poor demand in the sluggish US economy.
 
#4 ·
Autoindex.org

Ford to build all-new Futura at Hermosillo

Ford has issued the following press release:

The all-new 2006 Ford Futura, a cutting-edge mid-size sedan that continues Ford's aggressive revitalization of its car lineup, will be built at the Hermosillo Stamping and Assembly Plant in Sonora, Mexico, beginning in 2005, the company announced today.

The Futura is the first iteration of a vehicle platform that will form the basis for up to 10 new products and 800,000 units of volume across the Ford, Lincoln and Mercury brands in the next several years. Total program investment, including platform development, will be in the range of $1 billion USD.

Nick Scheele, president and chief operating officer of Ford Motor Company, and Marcos de Oliveira, president and chief executive officer of Ford Motor Company Mexico, together with the President of Mexico, Vicente Fox, and the Governor of the State, Eduardo Bours Castelo, told employees and suppliers about the Hermosillo project, including the expansion of the plant and the construction of an industrial park on site for as many as 19 local suppliers.

The industrial park is for tier one local suppliers who provide Ford with materials and equipment for stamping and assembly operations. In addition, a group of approximately 16 Mexican suppliers will also invest in their facilities, contributing to the economic development of the region and setting a new standard for the industry.

To prepare for the Futura, the plant will install Ford's all-new, next-generation flexible manufacturing system, allowing it to change products and options more quickly to better meet market demand.

"As one of 65 new products Ford will introduce during the next five years in North America, the Ford Futura is an important addition to Ford's remarkable range of new products," said Scheele. "The Hermosillo plant has a reputation as a high-quality, efficient facility, and with the addition of Futura, it will be a leader in flexible manufacturing and supplier innovation."

Production of the all-new Futura, which could add up to 2,000 employees at the plant, will begin in 2005. Hermosillo will have the capability to produce future Lincoln and Mercury models off the Futura platform. The Hermosillo plant will have maximum capacity of 300,000 vehicles, with production levels based on customer demand.

Flexible Production System

Hermosillo will be among many Ford plants to install a next-generation flexible manufacturing system, allowing it to build up to eight different models off two platforms. "Hermosillo will have the ability to change the mix, volume and options of products in response to consumer demand and market segmentation with minimal investment and changeover loss," said Scheele.

During the next decade, Ford expects to save up to $2 billion in North America because its flexible system will cost 10 percent to 15 percent less than traditional systems, with an added 50 percent savings in changeover costs.

Ford Futura

The Ford Futura is aimed at the heart of the mid-size car market boasting world-class I-4 and V-6 engines, and will come with a full range of fuel-efficient, modern transmissions. Futura will feature breakthrough interior spaciousness and many other best-in-class features.

The Futura's architecture is developed from a modified Mazda6 design. Futura will be sold in Mexico, Canada and the United States.
 

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