The Blue oval could launch a Hyundai Ioniq competitor.

Ford will invest $1.6 billion in a brand-new factory in Mexico where a dedicated green vehicle could be manufactured.

Ford is preparing to build its first all-new North American assembly plant in more than 20 years and the Blue oval has chosen Mexico as the place to put a massive $1.6 billion investment. The company is still refusing to confirm what models would be assembled there, but many sources claim production of the next generation Focus sedan and hatchback could move from Wayne, Michigan, to Mexico.

What’s more interesting, Ford could start producing a dedicated green vehicle at the same plant that will be available in three different versions – electric, hybrid, and plug-in hybrid. No specific details are available at the moment, but it is believed the car will wear the Model E moniker and will be based on the next-gen Focus, but featuring a distinctive body.

Ford is reportedly planning a production of around 50,000 units of the new vehicle that will effectively replace the C-Max Hybrid, C-Max Energi plug-in hybrid, and Focus Electric. It is expected to hit the assembly line in 2019.

In late 2013 Ford submitted a trademark request for the Model E designation several months after Tesla did the same. A year later, it was announced “the matter has been resolved amicably” and the Blue oval company would use the name.

A long running rumor tells Tesla wanted to give the Model E moniker to its latest product on the market, the recently launched Model 3, so that the brand’s car names spell S-E-X.

Note: 2014 Ford C-Max Energi pictured.

Sources: Ford via Automotive News and GreenCarReport

Gallery: 2013 Ford C-MAX Energi is the most fuel-efficient plug-in hybrid in U.S., returns 108 MPGe