$773M Ford investment may not impact Canada
Automaker to upgrade six Michigan plants, including two that use engines built in Windsor, Ont.
Posted: Dec 28, 2012 2:52 PM ET
Last Updated: Dec 28, 2012 2:51 PM ET
Massive U.S. investment announced by Ford Motor Co. may not have an impact in Canada.
Ford is spending about $773 million to expand six Michigan manufacturing plants while adding 2,350 factory jobs in the state, part of a broader investment plan announced last year.
Ford Motor Co., based in Dearborn, Mich., aims to invest $6.2 billion in U.S. facilities and add 12,000 factory jobs across the country by 2015.
The expansion should help increase manufacturing of transmissions and axles as demand grows for fuel-efficient cars and F-Series pickup trucks, Ford said Thursday.
According to the Detroit Free Press, Ford will invest $161 million in the plant that stamps out body panels the Ford Mustang. Engines for the F-150 series and the Ford Mustang are built the Essex Engine Plant in Windsor, Ont.
However, CAW Local 200, which represents hourly employees isn't sure what the Michigan investment will mean to Canadian plants.
Local 200 president Chris Taylor said the announcement has "no direct impact" on the Essex Engine Plant.
"There is no discussion or announcement on any investment on engine programs of capacity," he said. "It looks like this an investment to meet future and required demand."
According to the Free Press, Ford will add a second line at its Livonia Transmission Plant to increase the supply of transmissions for the F-Series and Ranger pickups. Ford will also add four new press lines at its Dearborn Stamping Plant and more than double capacity there for its next-generation of F-Series pickups.
"I have to believe that just the fact Ford is announcing investment - pretty substantial investment - and hedging on 2012 demand and sales ... [the company] has a good outlook, which is good news for us.
"Hopefully sales increase and the demand for our engines in Windsor increase."
Taylor said the union will meet with Ford officials early in 2013 and discuss engine volumes.
The automaker also wants to finish work at a plant that will make the new Fusion sedan.
The company's North American region has been profitable for three years after a gruelling restructuring, during which it cut thousands of jobs, closed plants and accelerated development of new autos, like the Focus sedan.With files from the Associated Press
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