Ford Motor Co to move Focus small cars production from Michigan
10 Jul 2015
Ford Motor Co said yesterday that it plans to move production of Focus small cars and C-Max hybrids from its Michigan Assembly Plant near Detroit in 2018, citing difficulties US automakers faced building fuel-efficient vehicles profitably at home.
The announcement is seen as clouding the future of one of Ford's largest US factories and comes only days before executives and leaders of the United Auto Workers formally kick off talks toward a new labour agreement. The UAW is likely demand wage increases and oppose company proposals to scale back healthcare costs.
Ford made no announcement as to where it would build the next-generation Focus and C-Max for the US market, though less than three months back the company said it would spend $2.5 billion on engine and transmission plants in Mexico.
Ford operated assembly plants in Mexico that make Fusion midsize sedans and Fiesta small cars. Ford and the UAW made no comment on reports that the cars would be made outside the US.
Ford spokeswoman Kristina Adamski said the company would make production decisions that allowed it to remain competitive.
"We actively are pursuing future vehicle alternatives to produce at Michigan Assembly and will discuss this issue with United Auto Workers leadership as part of the upcoming negotiations," she said.
Ford, General Motors Co and Fiat Chrysler Automobiles NV, although profitable, were struggling to compete with lower-cost Asian auto makers that now enjoyed the added advantage of weaker currencies as against the US dollar.
Small cars like the Focus delivered much lower profit margins than the pickup trucks and sport-utility vehicles that Detroit was best known for, and at the same time helped car makers meet stringent fuel economy mandates.
Auto makers wrested concession from the UAW before and after the financial crisis to dramatically cut labour costs, which helped revive US small car production. GM now made the subcompact Chevrolet Sonic in Lake Orion, Michigan, while Ford made its Focus in Wayne, in the same state.