Ford to invest $168 million into Ohio assembly plant, shift production from Mexico to Cleveland

80 of Ohio’s 88 counties are home to an auto manufacturing facility.
Norwalk Reflector Staff
Mar 8, 2014

 

U.S. Sen. Sherrod Brown (D-Ohio) applauded Ford Motor Company’s announcement that it will invest $168 million into its Ohio Assembly Plant. The investment will enable Ford to shift production from Mexico and retool its Cleveland area plant to produce the company’s all-new 2016 F-650 and F-750 medium-duty trucks.

Following the announcement, Brown offered the following statement:

“Ford’s announcement is excellent news for Northeast Ohio workers and our state’s proud auto industry,” Brown said. “One in every six cars produced in the United States is made in Ohio due to the quality of our workforce. Bringing production back to the United States from Mexico will strengthen our state’s growing economy and make our local manufacturing base even stronger.”

The Ohio Assembly Plant opened in 1974 and currently produces the Ford E-Series lineup of vans and other commercial vehicles. According to the company, production in Ohio of some Ford E-Series vehicles will be replaced by the two new-medium duty trucks. This shift in production from Mexico to the Ohio Assembly Plant is the result of the 2011 collective bargaining agreement between Ford and the United Auto Workers (UAW).

Brown continues to fight for Ford and the U.S. auto industry. Brown, along with U.S. Sen. Roy Blunt (R-MO), is the author of the Revitalize American Manufacturing and Innovation Act (RAMI), bipartisan legislation which would strengthen American manufacturing by establishing a Network for Manufacturing Innovation (NMI) and creating thousands of high paying, high-tech jobs. RAMI is endorsed by the American Automotive Policy Council (AAPC), of which Ford is a member.

In early 2009, Brown was a strong advocate for the American auto rescue which helped protect Ohio’s auto supply chain, for which Ford plays a significant role. In November 2008, he introduced S. 3175, the Auto Industry Emergency Bridge Loan Act, with a bipartisan group of colleagues. In December 2008, Brown fought to ensure that funds from the Troubled Asset Relief Program (TARP) were allocated to aid the Big 3 and American auto suppliers—despite near-unanimous opposition from most House and Senate Republicans. One in every eight Ohio jobs is connected to the auto industry; one in every six cars produced in the United States is made in Ohio; and 80 of Ohio’s 88 counties are home to an auto manufacturing facility.

Last month, Brown applauded a speech by Joseph R. Hinrichs, Ford Motor Company’s Executive Vice President and President of the Americas, who called for the Obama Administration to ensure strong currency manipulation measures in the Trans-Pacific Partnership (TPP) agreement. Brown is the author of the Currency Exchange Rate Oversight Reform Act of 2013, bipartisan legislation that would stand up for American workers and businesses when countries like Japan cheat by manipulating its currency.

In March 2013, Brown joined a group of more than 50 senators in urging President Obama to put the best interests of American workers and businesses first as negotiations continued with Japan on its potential entry to the TPP. Brown and his colleagues specifically cited Japan’s longstanding efforts to impose trade barriers and block U.S. exports as actions that have hurt the American economy, domestic job creation, and specifically its auto industry.

Comments

44846GWP

Where is Winnie to spin this story??

Contango

lol

Too bad about your lack of reading comprehension skills Zippy.

I've written numerous times in the past yr. that cos. were bringing production back from overseas due in part to increased labor and transportation costs.

Also:

"To be sure, financial engineering abetted by the Fed's QE also has had real effects.

Steven Ricchiuto, Mizuho Securities U.S. chief economist, notes that the central bank's actions allowed auto makers to resume offering cut-rate car loans, which has boosted auto demand to precrisis levels."

Your pal, Comrade Sen. Brown is just piggybacking on the news and the actions of the Fed Resv.

http://online.barrons.com/articl...

Dr. Information

Actually zip code, Contango has been saying this for years. Now bow down for him being right.

methodman

Explain cut rate car loans? "This is a result of a 2011 collective bargaining agreement between the UAW and Ford". Article reads like "Comrade" Brown has been busy with auto industry related legislation. "Bipartisan" at that. You've written? Where? Here in the comment section? Good call. Now Ms. Cleo what will happen with the "jobs" situation in Norwalk? And can u give me the winning lottery numbers for Wednesdays drawing? By the way, I'm bowing down as I ask.

Contango

Re: "Explain cut rate car loans?"

"Subprime Loans Are Boosting Car Sales":

http://www.businessweek.com/arti...

Worked out well for the housing mkt. didn't it?

-----------------

"The 'jobs' situation in Norwalk"?

I still think that Sam Kinison said it best:

http://www.youtube.com/watch?v=P...

methodman

You're comparing car market and housing market? " Interest rates on subprime loans can be as high as 19%". "On track for the best sales since 2007. Fueled by buyers with spotty credit. Which Expirian has been tracking since 2007." Your link kinda contradicts the point you're trying to convey here. And the link from your previous comment didn't work. Sam's a funny dude and obviously the Mexicans have taken his advice and came to where the food is. People tend to be funnier when jacked up on booze and drugs.

Contango

Re: "And the link from your previous comment didn't work."

"Happy Birthday, Bull":

http://online.barrons.com/articl...

Copy and paste the title into Google and click on a link. Get's ya past the filters.

You asked about the Norwalk jobs situation; food is a metaphor for jobs.

Believe it or not; the Fed Resv's ZIRP and QE policies have been fueling this "recovery."

The starting price of those trucks is $55K. Must be a whole lota rich people buyin' 'em by the dozens in cash if they ain't financing.

http://www.cleveland.com/avon-la...

methodman

What's a payment on 55000 per month? Financed or bought with cash, the people buying these vehicles gotta have some good income.

Contango

Re: "good income."

Not necessarily; back to the sub-prime.

Lota cheap money floating around heavily distorting the numbers.

methodman

Again 55000=how much a month. Gotta have a good job to afford the payment, insurance, and fuel for a vehicle like this. Any who.

44846GWP

Well, you can do what Winnie did, get a zero percent loan for five years, with a total price over what the car is worth, to make up for that zero percent, and make monthly payments. So by the time he is three years into it he owes more than the car is worth. When buying a new car, if you can't pay it off in three years you can't afford it!

Contango

Re: " if you can't pay it off in three years,"

At what percent interest rate Zippy?

Contango

Re: "Gotta have a good job,"

Not necessarily. Lota people with low credit scores getting auto loans.

Also, there's a lot of leasing being done.

"how much a month."?

That's for you to figure out.

Besides, what happens to auto sales when interest rates eventually rise?

methodman

As usual. Blah blah blah blah. " I know more than anyone contaco." Low credit scores getting a55000 rig? Sure bub. Leasing u say? So? What does happen when interest rates rise? Seeing how your interest rates depend on your credit score I'll say that people pay for it.

Contango

Re: "Low credit scores getting a55000 rig? Sure,"

I gave you some confirmation:

"Subprime Loans Are Boosting Car Sales"

Other than "blah, blah, blah," where's yours?

If you don't think that the Fed Resv.'s easy money policies are helping to fuel this, you're fooling yourself.

The Mkt. ultimately determines interest rates.

Snoozer

Labor cost? really? how cheaper can you get? thats why walmart products are junk!

JACKEL

The Mexican's were taking too log of siestas !

Cliff Cannon

Very cool ! Here's hoping many more American company's bring American jobs back to where they belong---America

swiss cheese kat's picture
swiss cheese kat

Ford just laid off 900 workers at the Avon plant.

mikeylikesit

it's funny, we don't see comrade brown claiming that one..

Cliff Cannon

@ Swiss cheese kat: " Ford just laid off 900 workers at the Avon plant. " Now I am confused. I thought Ford sales were going strong.

Contango

FYI:

"In lieu of indefinite layoffs, Ford will offer rotating shifts, job transfers and early retirement packages to most of the plant's 1,600 production workers during the retooling."

http://www.cleveland.com/metro/i...

"The move announced Friday is part of a pledge Ford made with union leaders in 2011 to shift medium-duty truck production from Mexico."

Nothing quite like letting the union help decide one's financial decisions.

http://www.fool.com/investing/ge...

Nothing is as it seems, nor is it otherwise. - Zen koan

Cliff Cannon

@ Contango : Thanks,now I have a better understanding of what is going on. As for the UAW helping to run Ford motor's business. Well, of course, that has been happening for a long time and it does seem to work.


I recently toured Ford's River Rouge truck plant, with friends. River Rouge, of course, was Ford from about 1920 till the 50's. One get's there by bus from " Greenfield Village " with Ford's world H.Q. across one street and Henry Ford's mansion " Fairlane " across another street ( Henry used to take a boat down the Rouge to work )


Being a Ford motor fanatic. I was telling my friends about Harry Bennett and his goons who beat the hades ( and killed a few ) out of Ford workers who wanted to unionize in the 30's.


Further, I continued that Henry turned Bennett loose on his only son Edsel amongst other foul deeds he did to his son. So Edsel's answer was to move his family to 'Grosse Pointe' which in those days was about as far from Dearborn ( and his dad ) as he could get.


I concluded with the story's of would be Presidential candidate Ford proving to the world in W.W. 1 he was a megalomaniac.Then finished with what has happened to Dearborn across the decades as well as today owing to his undying racist views.

So yeah, this man really needed the union to help him run his business, I'd say and the partnership seems to work yet, today.


I go down Ford memory lane today,simply for me. Because Edsel's last son William died yesterday at age 88 and another era has come to a close in Detroit's automotive history.


Having visited as many Ford homes, graves and plant's as one can. I truly mourn this end of an era and add this this tidbit; William Clay Ford was married to Martha Firestone. What a marital /business dynasty that was. I would have loved to listen to their dinner chat's, wouldn't you ?

Contango

Re: "William Clay Ford was married to Martha Firestone"

Reminds me of an old saying:

Shirtsleeves to shirtsleeves in three generations.

"'Commodore' Cornelius Vanderbilt (1794-1877) amassed more than $100 billion (in today's dollars).

His early heirs went hog-wild building baronial estates like The Biltmore, a 250-room French-style chateau in North Carolina.

But by 1973, according to one biographer, a reunion of 120 Vanderbilt descendants included not a single millionaire."

http://online.wsj.com/news/artic...

Cliff Cannon

" But by 1973, according to one biographer, a reunion of 120 Vanderbilt descendants included not a single millionaire."


That is amazingly crazy,isn't it ?

Contango

Re: "That is amazingly crazy,isn't it ?"

Yes, though not surprising.

Each successive generation wants a better quality of life for the next one and tends to breed 'gumption' out of 'em.

Afraid we’ve been doin’ it collectively as a country.

We've been to Ashville, NC and it was cold (no gardens), so we didn't go to the Biltmore.

former local

Agree Cliff!

Snoozer

The American people should ask one simple question? Why did ford and the other auto makers send american jobs to mexico and china in the first place? They sold out their people and workers in the name of greed and proffits!
As always follow the money and you will get your answer!
And when these jobs return to the usa what will be the payscale? it won"t be $28.00hr like the former auto workers got paid. Most likely $14.00hr if your lucky!
Its sad really that greed has to divide this nation and world, there is enough for everyone to have a good and prosperous life but those at the top won"t let that happen.

Contango

Re: "Why did ford and the other auto makers send american jobs to mexico and china in the first place?"

In order to mfg. vehicles for the local markets.

Dr. Information

No matter the topic, the cry babies come out. No wonder we are in trouble as a country! What do you tell your kids when another player on the basketball team is better? Not fair they are playing more than your kid? Go to the coach and ask for redistribution of playing time?

If you do not like where you are YOU are in control of it and have to make the changes. Stop blaming others for your shortcomings.

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