Ford is moving production of its F-650 and F-750 from Mexico to Ohio. It marks the first time the vehicles will be built in the U.S.
With barely a month to go in its contract talks, Ford Motor Co. may have thrown a meaty bone to the United Auto Workers union.
Negotiations got off to a slightly testy start following news that the second-largest domestic automaker would likely move production of several key small car lines from Michigan to Mexico. However, Ford began production of heavy-duty versions of its F-Series pickups, which previously were built in Mexico, at a plant in Ohio: a move that will “secure” more than 1,000 union jobs.
“Our investment in Ohio Assembly Plant reinforces our commitment to building vehicles in America,” said Joe Hinrichs, Ford’s President of the Americas. “Working with our partners in the UAW, we found a way to make the costs competitive enough to bring production of a whole new generation of work trucks to Ohio.”
This marks the first time the F-650 and F-750 models will be built in the U.S. The big trucks, heavy versions of the more familiar Ford F-150, were completely redesigned for the move, which was announced in March 2014.
Opened in 1974, Ohio Assembly Plant employs nearly 1,400 people and is one of the largest employers in Lorain County. In addition to now producing all Ford F-650 and F-750 models and configurations, the plant also produces the Ford E-Series cutaway vans and stripped chassis.
Ford invested $168 million to support the transfer of production to the plant in Avon Lake, Ohio, a suburb of Cleveland. The move is meant to expand Ford’s long-running dominance in the various commercial vehicle segments, ranging from the new Transit Connect cargo van to the Class 7 F-750 tractor rig.
But it could also help offset an issue that has spilled off the bargaining table and out into the highly charged political arena.
(Ford turning around the F-150 sales problem? To find out, Click Here.)
Barely a week before the start of quadrennial contract talks with the UAW, Ford announced it was going to pull production of the Focus sedan and C-Max people mover models out of a factory in suburban Detroit. While the maker did not say where they would move, it was widely reported that production would shift to a plant in Mexico.
Ford has been expanding its presence South of the Border, even as many competitors set up or expand their own Mexican operations. But the news didn’t sit well with the UAW whose members have been looking at job security as one of the key issues in the current contract talks.
(Click Here for details about the UAW’s strategy for negotiating for Ford.)
The issue also landed at the center of the early U.S. presidential campaign, GOP candidate Donald Trump declaring that he would take steps to heavily tax any new products Ford planned to import from Mexico – though he notably did not address the vehicles other manufacturers plan to bring into the U.S.
Whether the quid-pro-quo, a potential trade-off of the F-Series pickups for the Focus and C-Max, will satisfy the UAW is uncertain, but today’s announcement did generate some positive union feedback.
(Move to Mexico makes Ford potential UAW target. For more, Click Here.)
“Through collective bargaining, we were able to secure production of the Ford F-650/F-750 to Ohio Assembly Plant,” said Jimmy Settles, UAW vice president and director, National Ford Department.
Joseph Szczesny contributed to this report.
So, Mr. Trump, you say you would tax Ford for importing vehicles…what about everyone else? And I’m also pretty sure the US Constitution doesn’t let the POTUS do stuff just because he wants to.
Unfortunately you are mistaken about what a U.S. President can or would do. For instance Mr. Obama decided to make his own U.S. immigration laws and declare 5 million illegal aliens could stay, work and collect S.S. in the U.S. in complete violation of U.S. immigration laws which say these illegals are criminals and are to be deported.
http://www.breitbart.com/big-government/2014/11/20/live-updates-obama-exec-amnesty-speech/
IMO all imports should be taxed to create a level playing field. That means all of the crap produced in China would have an import tax that raises the price close to the retail cost of similar products manufactured in the U.S. That would mean that approximately 75% or more of the goods sold in Big Box stores which are imported from China, would triple or quadruple in price resulting in products being produced once again in the U.S. instead of in China so unscrupulous U.S. CEOs can receive even larger mega-million dollar annual bonuses on top of their mega-million base compensation while exporting U.S. jobs.
Those companies who build factories and create jobs in a country should not be undermined by get rich quick schemers who have crap products produced in China and shipped to the U.S. for huge financial profit. Apple, Intel, Microsoft and many more unscrupulous companies use Chinese slaves to produce their products sold in the U.S., UK and elsewhere. These products should be heavily taxed to discourage over-compensated, unethical CEOs enjoying a fine U.S. lifestyle while exporting U.S. jobs.
The reason why Mr. Obama and other corrupt politicians get away with massive violation of U.S. law is because they were elected by the criminals they are protecting and rewarding with tax payer money. These illegals lower the standard of living in the U.S. by taking existing jobs because they will work for less. These illegals also overwhelm social services while increasing crime. ALL of this information has been documented by any number of independent organizations yet Mr. Obama doesn’t believe he has to follow U.S. laws.
Let’s play the rope-a-dope game…
Say, what’s that giant sucking sound?
Um, Jorge, you do know that “imcrease import tax” goes both ways right? Understand you raise taxes on those imported goods, you raise tax / cost on “American” goods as well, which include the Detroit Three, which get MANY products from China.
Many don’t think that far ahead.
Also, you can’t just blame the greedy CEOs; look to your left, to your right, in front, in back of you, you’re surrounded by people who demand cheap stuff. Unfortunately this is a throw-away society
I completely understand how taxing imports works. It provides “inspiration” for greedy CEOs to move production back to the U.S. creating U.S. jobs that were lost and lowering the auto maker’s total cost compared to importing from other countries. The only reason they exported jobs was for larger personal compensation and to over compensate investors.
I agree we have a disposable society but it is due to the values and processes perpetuated by the greedy CEOs. If the only products you can buy at Wally World, K-Mart, Home Depot, et al is made in China and the product fails within a year’s time, what choice do average income consumer’s have? If American’s were smart they’d refuse to buy any Chinese products offered in America but since they can no longer buy American made products in most instances, they have no choice but to buy Chinese crap that Big Box companies sell. Consumers are not lusting for Chinese crap that is for sure.