Ford to spend $9 billion on US plants if UAW contract passes

Ford to spend $9 billion on US plants if UAW contract passes

Work guarantees for multiple plants including in four-year contract.

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November 10, 2015

Ford will spend $1.8 billion to upgrade its Livonia, Michigan, transmission plant to add three new transmissions, if workers approve a new four-year deal between the automaker and the United Auto Workers union.

Cleveland, Ohio – Ford would spend $9 billion throughout the next four years on plant upgrades if employees approve a new tentative contract between the automaker and the United Auto Workers (UAW).

The UAW released contract details Monday after local leaders agreed to the deal. Locals will now schedule votes nationwide. As with the General Motors and Fiat Chrysler Automobiles’ contracts, workers would gain raises, signing bonuses, and significant new plant investments if they approve the deal.

Spending detailed in the contract includes:

  • Chicago Assembly – $900 million for new Explorer, new police Interceptor, new product to be added. The Taurus would continue production but could end within the next four years.
  • Dearborn (Michigan) Truck – $250 million for continuation of F-150, addition of F-150 Raptor super truck.
  • Flat Rock (Michigan) Assembly – $400 million to continue Mustang production, add the new Lincoln Continental, and continue Fusion production.
  • Kansas City Assembly – $200 million to continue F-150 and Transit van construction.
  • Kentucky Truck (Louisville) – $600 million for new F-Series Super Duty Trucks, new investment for Ford Expedition/Lincoln Navigator production, insourcing of instrument panels and other components.
  • Louisville (Kentucky) Assembly – $700 million for the next-generation Escape SUV. Lincoln MKC production will end to allow more capacity for the Escape.
  • (Avon Lake) Ohio Assembly – $250 million to continue production of F-650 and F-750 medium-duty trucks and E-Series cutaways and stripped chassis (for ambulance and commercial truck buyers), and the addition of a new product.
  • Dearborn (Michigan) Engine – $50 million to continue and upgrade 2L engine production.
  • Cleveland (Ohio) Engine – $150 million to continue 2L, 3.5L, and 3.7L engine programs.
  • Lima (Ohio) Engine – $250 million to continue 3.5L and 2.7L engines, add two new V-6 engines.
  • Romeo (Michigan) Engine – $150 million to continue 5.2L and 6.2L engines with an upgrade on the 6.2L to support Super Duty production. Continuation of 5L block and con rod work, and the addition of head machining.
  • Livonia (Michigan) Transmission – $1.8 billion, Ford’s biggest investment, to add three new transmissions and gear machining. Production of current six-speed transmissions would continue.
  • Sharonville (Ohio) Transmission – $900 million to add a new transmission family and gear machining for two new transmissions. Production of six-speed transmissions and gear machining would continue.
  • Van Dyke (Michigan) Transmission – $650 million to add three new transmissions and continue two current programs.
  • Rawsonville (Michigan) Transmission – $50 million to continue production of batteries and other components and prep products for the Dearborn Truck Plant. The UAW and Ford agree to study making seats at the plant.
  • Sterling (Michigan) Axle – $400 to continue exsting axles, upgrade Explorer/Navigator axles, and add a new axle for the Explorer.
  • Buffalo (New York) Stamping – $30 million to continue existing programs and upgrade stampings for the Super Duty line.
  • Chicago Stamping – $200 million to continue current Explorer and Transit stamping and upgrade equipment for the next-generation Explorer.
  • Dearborn (Michigan) Stamping – $80 million to add a new press line, a hydrform press, and two machining lines. The stampings and hydroforming are needed for the Super Duty.
  • Woodhaven (Michigan) Hot Metal Forming Plant – $300 million to ad five new metal-forming cells and laser cells. The plant had been called Woodhaven Stamping.

“The significant new investments will strengthen job security and job growth over the long-term,” says UAW President Dennis Williams. “We worked hard to secure an agreement that provides a clear path to traditional wages for all members and substantial raises for traditional members for the first time in 10 years. Our members will have the final word, and we look forward to the conversation in the days ahead.”

Other contract benefits include an $8,500 signing bonus, $10,000 in increased wages, and the removal of a cap on the earnings used to calculate profit sharing. Ford workers have earned on average $30,000 throughout the past four years in profit sharing, though Ford’s profits have not yet hit the capped levels from the old contract.

Source: UAW