Ford Motor Co. (NYSE: F) will refit an existing truck plant in Michigan to manufacture smaller cars. Cost: $75 million. This comes on the heels of one of the worst years ever for large American automakers, which still can't cope with rapidly changing consumer desires for fuel-efficient transportation instead of gas guzzling SUVs and large trucks.As Georges indicated recently, Ford will need massive plant retooling to get its bottom line back in shape as it produces the product mix consumers are looking for. This is a good step for Ford, even though it will be costly. The $75 million price is minor considering the cost of doing nothing.
Ford says the production of newer, fuel-efficient cars at the Michigan plant will begin in a few months, with completion sometime in 2010. It's also moving 1,000 of the employees from that plant to another one in Wayne, Michigan to increase production of the 4-cylinder Ford Focus sedan. Since Ford spent $300 million just three years ago to build the plant to be flexible, this should speed the conversion, according to the automaker.
It's just too bad that Ford can't unveil more small car production in November instead of just starting to convert a plant for a few years down the road.
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Reader Comments (Page 1 of 1)
8-27-2008 @ 1:34PM
attathomeguy said...
Maybe now Ford will see how smart toyota and honda are on building only flexiable plants!!!
8-27-2008 @ 2:26PM
David said...
attathomeguy: You mean those flexible plants that don't have all those Union and pension issues?
8-28-2008 @ 12:06AM
Dave said...
For all you people out there that think our car manufacturing jobs should just disappear, yet think that the Republicans and their "homeland security/war on terrorism, is a good thing, should always remember....the only thing that'll keep our true enemies away from our shores is our manufacturing capabilities. During WWII our car companies built all our tanks and airplanes! Just think if our car companies are sold or go out of business...who'll be able to defend our country? Just think our airplane retanker/refueler planes were just bid to an outside country to supply our military with these planes! One by one this country is losing it's ablity to defend itself! Just think about it.
8-28-2008 @ 1:58AM
jerry mcdonald said...
it shouldn't take a ceo,president,or any other inept person to figue out they were going down the wrong road.Plant meeting after plant meeting, the union leaders and salary run their mouth and couldn't change the problem,because they didn't want to.They tried everything they knew to bankrupt and divide the people.Jack nasser started it all with his i deocy
9-01-2008 @ 8:14AM
don said...
The company I work for does alot of the retooling for the Detroit 3.So I get 1st hand insight on the production process. A mojority of the problems come from management and bean counters. They are more worried about numbers than quality. Thank goodness for the rebel skilled trades employees that take quality serious and buck the system and stop the line and fix issues. The way I approach my job is, precious cargo is in these vehicles and I put 100% of my abilities into every hour worked. I take alot of pride in my work and it could be my daughter your daughter or just the the average joe in the cars we build. ALL I ASK IS FOR EVERY AMERICAN TO BRING YOUR "A" GAME EVERY DAY TO WORK. IF WE DONT MEXICO AND CHINA WILL.
9-09-2008 @ 3:59PM
bill said...
We should all support Ford and GM and chrysler as they are us. based. They provide jobs, and is necessary in our economy. Other countries limit imports on cars etc. while we open our doors and pay for it. BUY AMERICAN every chance you get!