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Ford Wants a Mexican Fiesta

16:21 H | Topics: Business - Latin America - Mexico - Money

How many of us have chuckled at the ridiculousness of the name carmaker Ford gave one of its low-end cars -- the "Fiesta"? Well that little piece of metal's name will be a little more authentic, as the car will now be built in Mexico, a change that The Christian Science Monitor calls "a blow for Detroit":

But for Mexico, Friday's announcement – which has been heralded as the largest manufacturing investment in the country's history – is a decisive feat.

President Felipe Calderón called the $3 billion deal a "turning point."

While the US automaking industry sags – undergoing massive restructuring and downsizing – Mexico's production has expanded, especially for small, low-cost vehicles. Last year, Mexico produced a record number – over 2 million – and analysts forecast that by the year 2015 production could at least double.

The CSM says that the production of these smaller vehicles could position Mexico as a center for fuel efficient cars, bringing back some of the money lost as manufacturing jobs have moved to China.

Via / Christian Science Monitor

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