The US carmaker said a planned factory in the central state of Guanajuato will build engines and transmissions, while another in the northern city of Chihuahua will make car parts for use by Ford factories in the United States, South America and Asia.

The two facilities will cost about $2.5 billion and employ some 3,800 people, said Gabriel Lopez, president and CEO of Ford Mexico.

Ford without warning last month canceled plans to build a $1.6 billion project in San Luis Potosi.