Ford Motor Company moves production of F-650 and F-750 truck from Mexico to Ohio
By MoneyTimes
Aug 13, 2015 02:30 AM EDT
Regions
Mike Gammella, local chairman of the United Auto Workers (UAW), from left, Jimmy Settles, vice president of the UAW, U.S. Representative Marcy Kaptur, a Democrat from Ohio, Joe Hinrichs, president of the Americas for Ford Motor Co., Charlie Binger, manager of the Cleveland Engine Plant, Mark Elliott, Mayor of Brook Park, and Pete Johnson, local chairman of the UAW, stand for a photograph with a 2.0 liter ecoboost engine during an event at the Ford Motor Cleveland Engine Plant in Brook Park, Ohio, U.S., on Thursday, Feb. 21, 2013. Ford Motor Co. said it will invest $200 million to make four-cylinder engines at the plant starting in late 2014 as the second-largest U.S. automaker equips an increasing number of models with smaller, more fuel-efficient powertrains. (Photo : MoneyTimes)
Ford Motor Company will announce on Wednesday the shifting of its F-650 and F-750 truck production in Ohio from Mexico to cut costs.
In a report from Reuters, starting Wednesday, the production of Ford's F-650 and F-750 commercial trucks will be moved at its 41-year-old Ohio Assembly Plant.
March 2014, Ford announced on its official website that the management has decided to move its F-650 and F-750 in accordance with its 2011 contract agreement with the United Auto Workers investing $168M for new equipment and facilities assuring an added 1000 hourly jobs.
"We are extremely pleased that the dedicated, highly skilled and highly motivated UAW members of Ohio Assembly Plant have been selected to build the next-generation Ford F-650 and F-750," UAW VP and director of the National Ford Department Jimmy Settles commented.
"Shifting production of the 2016 Ford F-650 and F-750 medium-duty trucks to Ohio Assembly Plant helps secure a solid future for the dedicated workers at this facility," observed Joe Hinrichs, Ford president of The Americas, affirming that they found a cost effective way to produce the new generation of the 2016 medium duty trucks.
The decision resulted from previous reports that carmakers are cutting costs due to low demand and a drop of sales that started years earlier. In an updated analysis from Franchise Help, the Big Three companies; Ford, Chrysler and General Motors have been suffering a huge decline of sales for years.
Even so, the automotive industry still is the major asset in the American economy. Consequently, automakers are implementing some measures to provide customers high-quality vehicles at a competitive price.
In view of that, the Ohio Assembly Plant in Avon Lake will end its production of Ford E-Series cargo and passenger van this year. Though it will still fabricate the E-series cutaway van chassis throughout the decade, the model vehicle will be replaced by 2015 Ford Transit in Kansas City Assembly Plant.