Ford Motor (F) said Tuesday it will invest $1.6 billion in a new plant in San Luis Potos?, Mexico, to build small cars, making it the latest automaker to expand its presence there.

Ford's investment in Mexico will create more than 2,800 jobs by 2020, delivering a blow to the UAW, which pushed for higher wages in its contract talks with the automaker last year. The announcement also comes amid a presidential election where the the leading Republican candidate, Donald Trump, has publicly pressured Ford to drop its plans to expand in Mexico.

Ford said Tuesday it remains committed to investing in the U.S. and adding jobs in America even as it expands its presence in Mexico.

Ford said construction of the new plant will begin this summer and expects to begin producing cars there in 2018. Ford's investment in Mexico will create more than 2,800 jobs by 2020, delivering a blow to the UAW, which pushed for higher wages in its contract talks with the automaker last year, and prompted a swift reaction from the union.