Brent Snavely

Detroit Free Press

Ford is planning to double its vehicle production in Mexico by 2018 as it builds a new plant and expands an existing plant, according to a report in the Wall Street Journal.

News of Ford's expansion plans come just months after the UAW negotiated a more expensive labor contract with the Detroit Three.

Ford, along with nearly all other automakers, have been expanding rapidly in Mexico in recent years to capitalize on the country's lower labor rates, efficient port and rail system and free trade agreements.

In June, Ford confirmed plans to end production of the Ford Focus and Ford C-Max at Michigan Assembly in Wayne in 2018 and move production of those cars outside of the country. Ford has not said it will make those cars in Mexico but few auto observers think the automaker would move production to Canada.

Blow to UAW: Ford C-Max, Focus production to leave U.S.

The Journal said Ford plans to add 500,000 units of annual capacity in Mexico starting in 2018, which would double the capacity it had 2015. Citing people familiar with the matter, the Journal said Ford's new assembly complex will be based in San Luis Potosi. Ford also plans to expand an existing plant in Cuautitlán.

A Ford spokeswoman declined to comment.

On Friday, UAW President Dennis Williams said automotive investment in Mexico is a "huge problem."

Williams argues that Ford, as well as General Motors and Fiat Chrysler Automobiles, are all earning profits now in North America and says they don't need to move production to make profit.

"There is no reason, mathematically, to go ahead and run to countries like Mexico, Thailand and Taiwan," Williams said.

UAW president Williams sees Mexico as a 'huge problem'

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.