FreightCar America expands railcar manufacturing in Mexico, targeting 6,000 units annually despite U.S. trade risks. The company drives growth with bold capacity goals. This is reported by the railway transport news portal Railway Supply.

FreightCar America expands railcar manufacturing in Mexico, targeting 6,000 units annually despite U.S. trade risks. The company drives growth with bold capacity goals.
Photo: FCA

FreightCar America Targets Big Gains

In 2024, the Castanos plant produced 5,000 railcars and ran at 87% capacity with strong output. FreightCar America delivered and refurbished 4,362 railcars, up 44.3% from 2023, setting high benchmarks.

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For 2025, the company plans to ship 4,500 to 4,900 railcars, expecting $530 million to $595 million in revenue. Currently, FCA holds contracts for 2,800 railcars worth $267 million, securing its future earnings.

The firm’s strategy focuses on offering over 50 diverse railcar models and maintaining a broad portfolio. FCA relocated production to Mexico in 2021, slashing costs with affordable labor and resources.

Likewise, rivals Greenbrier and Trinity Rail shifted manufacturing to Mexico, tapping into similar advantages. These firms mainly supply the U.S. and Canada, fueling regional demand.

FreightCar America Faces Trade Hurdles

Yet, U.S.-Mexico trade tensions escalate as 25% tariffs loom, effective April 2, 2025. President Trump cites drugs, migration, and trade imbalances, challenging FCA’s cost strategy.

Despite this, FCA commits to scaling operations and meeting North American railcar needs with efficiency. The firm’s adaptability shines, but trade shifts could squeeze profits soon.

Analysts track FCA as it balances growth and policy changes in a competitive market. Its focus on diversification and savings keeps it ahead amid uncertainty.

Nevertheless, evolving U.S. regulations might push FCA to tweak plans and protect its momentum. With a strong portfolio, the company braces for challenges and opportunities alike.

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