Ford’s planned New Mexico plant, put on hold

Ford’s plans on constructing a new assembly plant in northern Mexico will be put on hold and will rather to build a small car in the U.S., just as it has promised the United Auto Workers in the new labor pact.

For UAW President Ron Gettelfinger, one of his primary concerns was for Ford and GM to manufacture small and alternate fuel vehicles in plants staffed by union members. He also stressed in his speech to the Detroit Economic Club that small car production will soon leave the U.S.

In the newly ratified agreement with the UAW, Ford agreed to keep five plants open, which includes the assembly plants in Louisville, Ky., and Wayne, Mich. According to the report by the car connection, the Ford Focus is being built in the Wayne plant. Ford’s assembly plant in St. Paul, Minn. will remain open until 2009. It is also where the Ranger pickup is being produced.

Meanwhile, Ford CEO Alan Mulally said that the new UAW agreements will make the company more productive. The new contract will allow Ford to profit from “a lower sales volume and mix of vehicles that include fewer trucks and more passenger cars.” Almost $2 billion will be saved annually due to the changes in healthcare agreements.
It was in January 2006 that Ford first announced the possibility of building a new, low-cost assembly line at the same time it unveiled its “Way Forward” plan.
Source: http://www.thecarconnection.com/Auto_News/Daily_Auto_News/Ford_Drops_New_N_A_Plant_Plans.S173.A13657.html