Ford announced on Tuesday it would will build the next-generation Explorer SUV at its Chicago assembly plant starting in the fourth quarter of this year, and bringing about 1,200 new jobs to the region.

It will spend almost US$400m on the assembly stamping plants to build the popular model which will have at least 25% greater fuel efficiency thanks to EcoBoost engine technology, six-speed transmissions and unibody construction.

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The Explorer will be assembled on a flexible line alongside the Taurus and Lincoln MKS sedans.

The line will launch the motor industry’s first production inflatable seat belts, designed to provide additional protection for rear seat occupants – often children and older passengers who can be more vulnerable to head, chest and neck injuries. The inflatable rear seat belts spread crash forces over five times more area of the body than conventional seat belts, which helps to reduce pressure on the chest and to control head and neck motion for rear-seat passengers. The automaker plans eventually to fit the technology to other vehicles sold worldwide.

Ford has sold over 6m Explorers since the vehicle was originally launched in 1990; it was America’s best-selling midsize SUV for 15 of the past 19 years.

Ford will receive tax credits from Illinois’ Economic Development for a Growing Economy (EDGE) programme, available to businesses that commit to new investments and create or retain jobs in the state. New legislation allows the automaker to participate in EDGE through payroll tax credits rather than corporate income taxes.

The current Explorer models are built at the company’s Louisville assembly plant in Kentucky. The shift to Chicago will see Louisville changed to a flexible, fuel-efficient small car plant from a truck-based SUV plant and Ford will begin producing new vehicles based on its global C-car platform there in 2011.

The Chicago plant was opened in 1924 and currently has about 1,200 employees working one shift. The stamping plant, opened in 1956, has about 700 on two shifts. Opened in 1955, Louisville employs about 1,000 on a single shift.

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