Ford Motor Company (NYSE:F) shifts its plans to build an electric vehicle in underutilized Michigan based Mustang plant. According to available information, the company now plans to build electric vehicles at an Avon plant in Ohio. Ford would invest $900 million at this plant to develop and build new products in 2023.
Reaches a tentative accord with UAW
General Motors suffered a loss of $3 billion as a result of the strike. Ford entered a tentative accord with United Autoworkers earlier this week. As per the agreed terms, the company is pumping in $900 million at its Avon, Ohio plant. The workers would cast their votes on the contact starting November 4, 2019. Around 55,000 Ford workers would ratify the deal through November 15, 2019. The full-time members of UAW are eligible to get a signing bonus of $9,000. But, the new deal also makes way for the closure of an engine plant-based in Romeo, Michigan.
As agreed with UAW, Ford would invest over $6 billion in the US plants and retain or generate over 8,500 jobs of UAW. The company would pump in $1.1 billion in a pickup truck plant in Wayne, Michigan. It earmarks an investment of $ 1billion for the Kentucky plant. Ford also agreed to develop all-electric and hybrid versions of the F-150 pickup truck and SUVs.
In Flat Rock, Ford would build an all-new Mustang and pump in $250 million for operational needs. Ford said it would build battery-powered vehicles at its Michigan plant after relocating the anticipated sports utility vehicles to Mexico. It would also operate a new shift by the year 2023 at this plant. With the recent decision to shift electric vehicles production to Ohio plant, the company would now manufacture Lincoln Continental Sedan and the Mustang at its Michigan plant. The assembly of Fusion Sedans stopped at its Flat Rock in 2016 after reporting a 25% drop for the Continental and 16% decline for the Mustang models.
Strategy for underutilized Flat Rock Unit
As per the new commitment with UAW, Ford would draw plans to produce new products over the next four years at its underutilized Flat Rock Unit.