A report in the Detroit News a fortnight ago was proved correct on Thursday when Ford said it would spend $US240 million to consolidate North American production of the Focus in Wayne, Michigan, transferring hatchback assembly from Hermosillo, Mexico.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Reuters, the move will clear space at Hermosillo for production of the Ford Futura, a midsize saloon due out in 2005. The $240 million will be spent over the next four years, as Ford extends the Wayne plant, that already builds Focus saloons and estate cars, to make the hatchbacks currently assembled in Mexico.
Reuters said both Ford and state officials welcomed the move as a small step against the steady flow of motor industry manufacturing jobs to Mexico and other lower-cost countries. While the move will not add any hourly workers to the 3,500 already employed at Wayne, Ford North American chief Jim Padilla told Reuters the move would boost job security.
State officials reportedly said Ford would eventually spend a total of $583 million at the Focus plant and the adjacent Michigan Truck factory that produces sport utility vehicles. The state gave Ford $48.8 million in tax breaks in return for the plant spending, Reuters noted.
According to Reuters, US- and European-built Focus model lines will diverge in 2004. In Europe, Ford will roll out an all-new model line (following the C-Max minivan version just launched) while, in the US, an updated version of the current North American model, with redesigned nose and tail, a new interior and more powerful engines, will go on sale early next year.
