Ford spurns US for plant in Mexico

Car giant Ford plans to build its new Fiesta supermini for the US at a factory near Mexico City, in a blow to American car workers.

Ford plans to retool its Cuautitlan Assembly Plant from large-truck to small-car production as it moves to shift its factories from trucks towards more fuel-efficient vehicles, the company says.

Last year the United Auto Workers union had approved a contract that granted concessions to the car maker and earlier this year, union president Ron Gettelfinger said the UAW would try to convince Ford that its US plants were competitive enough to build its smallest cars.