Mexico hails Ford's 'global' car decision

MEXICO CITY, May 31 (UPI) -- Mexico celebrated Saturday after landing the biggest foreign manufacturing investment in its history, a $3 billion deal from Ford to build a new world car.

Mexican President Felipe Calderon announced Friday the Detroit automaker had chosen its facilities in that country as the site to make its "global" car, a new subcompact model meant to be marketed to consumers around the world, the Washington Post reported. Mexico had been competing with Asia and the United States as possible manufacturing venues for the global car.

The decision means Ford is likely to create 4,500 jobs at its existing Cuautitlan, Mexico, truck manufacturing plant, an area just north of Mexico City, the newspaper said. The big investment also is expected to generate 25,000 spin-off jobs for Mexico, which has ties with Ford stretching back to the 1920s.

Analysts have long expected Ford to announce plans for a big push behind a "global" car in an effort to switch its product mix away from gas-guzzling pickup trucks and SUVs toward more fuel-efficient vehicles amidst high energy prices, the Post said.

Members of the United Auto Workers were disappointed by the company's decision to invest in a foreign country.