Image caption Ford in one of a number of leading carmakers operating in Mexico

US car giant Ford has announced a $1.3bn (£800m) investment in its plant in the Mexican town of Hermosillo, creating 1,000 jobs.

The investment will help Ford meet growing demand for its Fusion and Lincoln MKZ models, the company said.

Ford has invested about $3bn in Mexico over the past decade.

Mexican President Felipe Calderon hailed the investment which, he said, would help boost car production in his country.

"Mexico in January rose to fifth place in global auto exports... and I think we are about to move into fourth place," he said.

A number of major foreign carmakers run plants in Mexico, including Volkswagen and Toyota.