Ford to invest $9B in US plants
By Money Times
Nov 11, 2015 01:57 AM EST
Nov 11, 2015 01:57 AM EST
As part of the labor agreement, the US automobile major Ford has decided to invest $9 billion in plants located in North America.
Similarly, General Motors (GM) has also assured the labor union on investment of $1.9 billion and Fiat Chrysler to invest $5.3 billion as part of the contracts signed with the labor union.
The latest investment agreement from Ford is expected to create 8.500 jobs in next five years and new models.
Ford has inked a pact with workers and signed a four-year agreement with United Auto Workers (UAW). The union is also planning to get approvals on such commitments from other automobile manufacturers.
UAW is aiming at creating and protecting the US jobs. Ford has generated 12,000 hourly jobs at all its US plants during the past four years. This increased the total hourly jobs to 53,000.
Ford has been under fire for its decision to invest $2.5 billion in a plant in Mexico as Donald Trump, one of the US Presidential candidates, raised voice against this. Trump was saying that he would impose a tax on Ford cars and trucks with Mexican parts after he becomes President.
The labor agreement with UAW will not only generate 8,500 more jobs but also result in more new models from Ford. Ford Rangers and Bronco would make a return in the market.
As part of the $9-billion investment plan, Ford will also develop new engines and transmissions by 2020.
Michigan Assembly unit will get $700million investment and is expected to add a new product by 2018. The stamping plant will support manufacturing of Ford Ranger and relaunch Ford Bronco SUV as well.
Michigan plant continues to make Ford Focus and C-Max range of vehicles unit they're phased out by 2018.
Another assembly plant at Chicago will receive $900 million investment is in the manufacturing activity of Ford Explorer and Police SUV Interceptor. The unit continues to produce Taurus vehicles.
The plant may be a part of a new project on manufacturing Lincoln MKC vehicles. Fiat Rock unit will get $400 million investment, Dearborn Truck unit will get $250million and Kansas City assembly unit will receive $200 million investment.
After the firming up investment plans, now there's one initiative is left for Ford and workers union. There'll be a voting on the contract among rank and file UAW members at Ford.
Ford in 2011 planned to invest $6.2 billion in US plants, but exceeded its previous plan as it put in $10billion and this generated more jobs than the automobile major promised. Ford workers are benefiting from the more generous deal when compared with workers at other automobile majors in the US.
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