You may have hear the big news that Ford, the renowned motor company, has decided to focus on moving its manufacturing jobs back to the United States. Ford has come to an agreement with the United Auto Workers Union which includes $16 billion in American investments to create new and redesigned cars by 2015 as well as 12,000 new jobs in the United States. This tentative four-year agreement will surely affect the lives of the American people from Florida to Utah.
So why is Ford doing this? Well the company’s executive vice president of global manufacturing and labor affairs, John Fleming, says that this agreement will improve Ford’s competitiveness in the United States — including in states like Utah, California and Nebraska. The agreement will also focus on hiring about 6,000 new employees at a lower pay scale. In addition, Mark Fields — Ford’s American production president — said a few years ago that moving the commercial vehicle production to the states will streamline and reinforce the manufacturing and engineering of the next generation’s medium-duty trucks.
According to the Detroit News, Ford plans to focus its manufacturing shift of medium-duty trucks from Mexico to America. The plan to switch the F-650s and F-750s to the Ohio assembly plant will start early in 2015. This Ohio assembly plant is predicted to earn more than $128 million from Ford in order to produce these vehicles.
For the previous six years, the Ford Fusion (which looks very similar to the Ford Focus) has been built in Hermosillo, Mexico. In the next few months, the Fusion’s production will be moved to Flat Rock, Michigan. Because Ford plans to build many vehicles at this facility, they hired an additional 1,200 workers at the plant. And they don’t plan to stop there; like a skier in Utah, Ford plans to keep on going. Some of the workers hired in the second shift will be new and others will be employees who were laid off at other Ford facilities.
As one of the most popular vehicle manufacturers (especially in states like Utah), Ford is changing the automobile industry. Mark Fields recently stated that “the total picture now for labor costs, productivity and especially worker quality has made the U.S. locations very desirable [for Ford].” Whether you currently own or plan to buy a Ford vehicle, the decision to move production back to the United States can affect you — and likely for the better in cheaper costs.