Ford Motor Co (NYSE: F) signed an agreement with the UGT Union in Spain today, according to the Associated Press. The agreement will allow Ford to build three new small- and mid-sized cars in its Almussafes plant in Spain, with an annual production target of 350,000 cars. The union has agreed to keep labor costs low in effort to keep the plant competitive with its European rivals.

The announcement comes at a time when automakers are doing everything they can to expand their global operations outside of the United States.
Japan's Nissan Motor Co (NASDAQ: NSANY) and Renault SA of France are in talks with India's Mahindra & Mahindra Ltd. to develop a car that would cost less than $3,000. In addition, Nissan has allied itself with Indian truck and bus maker Ashok Leyland Ltd. to build small trucks and other light commercial vehicles in India, according to the Associated Press today. India's very own Tata Motors Ltd. (NYSE: TTM) is also developing a $2,500 car for Africa and putting up showrooms across the continent the WSJ reported

Last month, Chrysler (NYSE: DAI) and Chery announced their joint venture to export cars to Latin America and Eastern Europe. The Journal reported in July that Ford plans to invest nearly $1 billion into Romanian car maker Automobile Craiova if its wins a tender to acquire a 72.4% stake in the company. The Romanian government hopes to wrap-up the deal by September 1st.

Inside the U.S., the United Auto Workers are fighting tooth and nail to keep their jobs. Both General Motors (NYSE: GM) and Ford have threatened to move their North American operations overseas if the union doesn't agree to their terms. The Wall Street Journal reported today that Chrysler is proposing to divest two non-core assets in the United States – Mopar and Chrysler Transport – citing people familiar to the matter.

Looks like Detroit's "threats" are turning into reality as each day passes by. The UAW better watch out.