Ford Motor Company is investing $1.6bn in a new plant in Mexico's San Luis Potosi State in a bid to increase production of small cars.
Mexico is the company's fourth-largest vehicle production site for global customers. Vehicles manufactured in Mexico serve customers in the US, Canada, China, Argentina, Bolivia, Brazil, Colombia, Chile, Paraguay, Peru, Uruguay and South Korea. The investment is part of the company's One Ford global product and manufacturing plan.
Construction of the plant will begin in the summer of 2016. The first batch of the new small cars is scheduled to be ready in 2018.
The car manufacturing facility will create 2,800 additional direct jobs by 2020.