90 Miles From Tyranny : Ford to Offshore $900M Plant Investment from Ohio to Mexico

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Thursday, March 18, 2021

Ford to Offshore $900M Plant Investment from Ohio to Mexico

The Ford Motor Company, a multinational automaker, is reportedly planning to move a $900 million investment originally intended for an Avon Lake, Ohio plant to a site in Mexico, the United Auto Workers (UAW) union alleges.

In a letter to Ohio Assembly Plant (OHAP) employees in Avon Lake, where Ford employs about 1,740 workers manufacturing its F-650 and F-750 medium duty trucks, UAW official Gerald Kariem said Ford had committed to investing $900 million in the project in 2019.

The massive investment, Kariem wrote to workers, included a Ford commitment to bring a “next-generation product” to the Ohio Assembly Plant for production by 2023 and an “exciting vision for the complete revitalization” of the plant to secure “employment well into the foreseeable future.”

“These contractual commitments were an enormous win for the UAW, for the great state of Ohio, the community of Avon Lake, and most importantly the members of Local 2000,” Kariem wrote.

Now, though, the UAW official says Ford executives are backing out of the deal and plan to move the investment to Mexico:
Unfortunately, Ford Motor Company has decided it will not honor its promise to add a new product to OHAP and, instead, it intends to build the next-generation vehicle in Mexico. Ford management expects us to just hang our heads and accept the decision. But let me be clear, we are making a different choice. We 100 percent reject the company’s decision to put corporate greed and more potential profits over American jobs and the future of our members. We expect the company to honor its contractual commitments to this membership and when it fails to do so we will take action.
Kariem said the UAW has asked Ford executives for explanations on why the decision was made to move the intended investment for Ohio to Mexico.

Ohio native and author of the New York Time‘s best-selling book Hillbilly Elegy JD Vance called the decision by Ford “total BS” and “a total bait and switch” move in a statement.

“Great way to alienate even more F-150 buyers in the U.S. Not so good for Ford optics in media and public,” a Ford worker wrote online of the move.

Despite Ford’s deep-rooted history in the United States, founded by Henry Ford in 1903, the automaker now has more plants abroad than it does in the U.S. For instance:

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tsquared said...

It comes down to profitability. The cost of labor is much less in Mexico. The current administration is going to increase corporate taxes. It is a business decision.

My question for the UAW is who did they support during the election? If it was Biden, they need to STFU.

Handy Handsome said...

Would you want to try to make a profit in Joe Biden's America???????

Radar1972 said...

Yes, thank the UAW and Ohio voters for this one.

Radar1972 said...

Yes, thank the UAW and Ohio voters for this one.

Radar1972 said...

Yes, thank the UAW and Ohio voters for this one.

Bear Claw Chris Lapp said...

Profit, not profitability.

clayusmcret said...

American unions that blindly support democrats routinely get what they deserve; being crapped all over by democrats. Can't say I'm surprised or feel sorry for them. When it happens the same crap gets dumped on the rest of us who learned that lesson many, many times ago and try to keep it from happening again.

nonncom said...

Elections have consequences.....if Donald Trump is sitting in the White House the plans for Ohio go forward....since the unions helped elect Mr. Dumb Bass, suck on it, unions....oh, and enjoy the tax hikes....

Luwanee said...

Just a question, why doesn't the UAW call a general strike across all plants till they move all operations back to the USA? A little pain now or a lot later.

Virtuous_AR said...

Yep. They can suck a fat one at take it like the little 'for profit' bitches they are. I'll never buy Ford again...at least with other trucks (Tundra anyone?) you know you're buying a foreign branded vehicle.