Ford Motor Company to Move $900M Plant Investment From US to Mexico
Ford now has more plants abroad than it does in the U.S
The Ford Motor Company is planning to move a $900 million investment which was initially meant for an Avon Lake, Ohio plant, to a site in Mexico, according to the United Auto Workers (UAW) union.
In a letter to Ohio Assembly Plant (OHAP) employees in Avon Lake, UAW official Gerald Kariem said Ford had committed to investing $900 million in the project in 2019.
Kariem told workers Ford's 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.
But the official says Ford executives are now 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. [Emphasis added]
Kariem said UAW demanded explanations on why the decision was made to move to Mexico.
Ohio native and author of Hillbilly Elegy JD Vance called the decision by Ford “total BS” and “a total bait and switch."
Much more to learn about this story. But this looks like a total bait and switch: they promised investment in Ohio and reneged.— J.D. Vance (@JDVance1) March 18, 2021
A Ford worker wrote online of the move:
"Great way to alienate even more F-150 buyers in the U.S. Not so good for Ford optics in media and public."
Ironically, Ford now has more plants abroad than it does in the U.S despite its deep-rooted history in America.
28 out of the 36 of the automaker’s assembly plants are China, Mexico, Germany, India, Brazil, and Vietnam.
China alone has seven Ford assembly plants.
Ford CEO Jim Hackett took home about $17.4 million in 2019.