Ford will build both plug-in and conventional hybrid versions of the new C-Max in the U.S. under the new UAW contract.
Ford Motor Co.’s new contract with the United Auto Workers Union also contained a revealing amount of information about the company’s future production plans — which now appear to include a large bump in U.S. operations.
Along with $6,000 signing bonuses, enhanced profit sharing and $7,000 in inflation protection, the tentative 4-year agreement will add at least 5,750 new UAW jobs, Ford officials announced, with the company acknowledging $6.2 billion in additional investments in products and plants – bringing to $16 billion the commitment it has now made.
Among the most critical developments, the union appears to have saved the AutoAlliance plant in the Detroit suburb of Flat Rock, which had been operated as a Ford/Mazda joint venture. The Japanese maker plans to pull out production of its Mazda6 and though it has suggested it might switch to a replacement, that isn’t considered likely. So, with only the Mustang to build the plant had seemed doomed to closure.
Instead, Flat Rock will become the second source for the next-generation Ford Fusion, starting in 2013, as well as the next-generation Mustang. That will help Ford expand production of the midsize Fusion – some apparently destined to be shipped to Europe. Primary production, however, will continue in Hermosillo, Mexico.
(Ford will base next Fusion sedan design on the striking Evos Concept revealed at last month’s Frankfurt Motor Show. Click Here for that story.)
Another key move triggered by the new UAW contract impacts production of the Transit Commercial Van, which will be insourced from Turkey to Ford’s Kansas City plant. And the automaker’s assembly plant in Louisville, Kentucky is scheduled to build a new, unnamed vehicle in addition to the next-generation Ford Escape, UAW and Ford officials said.
Ford also plans to shift production of both the C-Max hybrid and a plug-in version, dubbed C-Max Energi, from Europe to the Ford assembly plant in Wayne, Mich., outside of Detroit.
Another assembly plant in Avon Lake, Ohio will take over responsibility for building medium-duty trucks and frames from Mexico. Ford also plans to shift production of a new motorhome chassis to Avon Lake, according to the contract summary prepared by the UAW.
In addition to the assembly plants receiving new and in-sourced vehicles, three other assembly plants will receive substantial investments. Ten engine and transmission plants will receive investments, along with three stamping plants. A complete list of plant investment can be found on the UAW’s website.
“We are pleased that, by working together with the UAW, we reached a deal that is fair to our employees and that improves Ford’s competitiveness in the U.S.,” said John Fleming, Ford’s executive vice president of Global Manufacturing and Labor Affairs.
He hinted still further opportunities await allowing Ford to insource vehicles and perhaps more parts and components from Mexico, China, Japan and other parts of the world. That underscores the dramatic shift in competitiveness the new contract appears to provide.
“This agreement allows us to make even more progress on our One Ford plan and our focus on the great products, stronger business and better world that will deliver continued profitable growth for all,” Fleming said.
(Click Here for more on the UAW/Ford settlement.)