A done deal – Ford to close St. Thomas plant in 2011, shed 1,400 jobs

ford plant

MONTREAL — US automaker Ford Motor Co. will shutter one of its manufacturing plants in Canada in 2011, a move that will cut 1,400 jobs, the Canadian Auto Workers said Friday.

As part of a cost-reduction agreement between the company’s US headquarters and the CAW, the plant in St. Thomas will close in the third quarter of 2011, the powerful union said in a statement.

Some 1,400 employees will be dismissed, CAW spokeswoman Shannon Devine told AFP. Canadian media put the number of jobs eliminated at 1,600.

As part of the tentative agreement the union said it obtained a commitment by the US automaker to keep at least 10 percent of its North American production in Canada.
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St. Thomas Assembly Plant … “it is not looking good”

The future of the St. Thomas assembly plant was discussed yesterday and the automaker repeated there is no product for the local plant after 2011, Lewenza said.

The Crown Victoria, Mercury Grand Marquis and Lincoln Town Car are produced at the plant.

“We want St. Thomas to be extended, but that product line is being phased out. They have capacity all over the place. It is not looking good today.”

Ford did emphasize in talks yesterday it has made significant investments in Windsor, reopening an engine plant next year, and has added a fourth vehicle to its Oakville assembly plant.

“They indicated to us . . . Canada has been a key player in Ford’s success, but there is no product to allocate.”

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CAW emphasizes importance of new Ford contract as negotiations resume

The main issue in the ongoing negotiations on this side of the border is the future of an assembly plant in St. Thomas, Ont.

Currently, the 1,600-employee plant builds the Ford Crown Victoria, the Lincoln Town Car and the Mercury Grand Marquis – all full-sized cars, demand for which is limited to niche markets. The Crown Victoria is only included in sales of fleets, such as those run by police departments and taxi companies.

Ford has said repeatedly that it has no plans to manufacture vehicles in St. Thomas beyond 2011. Lewenza has suggested Ford could increase production at its other Canadian plants to offset the closure of St. Thomas, but Ford won’t release any details on its plans.

“We’ve asked them to take a look at where existing work is being sourced and see if there’s a possibility to source more work into our workplaces and those are the options we’re going to have to talk about (this) week, but to be honest we haven’t made much headway,” Lewenza said.

Ford spokeswoman Lauren More said the company doesn’t discuss future production or product plans for competitive reasons.
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Ford commits to new vehicles at U.S. plants, no such progress for St. Thomas Assembly Plant

Ford Motor Co. (F-N7.570.152.02%) has promised the United Auto Workers that its U.S. plants will receive a flurry of new vehicles, transmissions and other work during the next few years, while refusing so far to allocate new products to two Canadian plants.

Three Ford assembly plants – in Chicago, Louisville, Ky., and Wayne, Mich. – will begin building new vehicles in the next two years, and a commercial van called the Transit Connect that is now imported from Europe will be built at a UAW plant if North American assembly becomes necessary, according to investment commitments contained in a new contract between Ford and the union.

“The company reaffirmed its commitment to the UAW and its manufacturing presence in the U.S.,” Joe Hinrichs, Ford’s group vice-president of global manufacturing, said in a letter to UAW officials that is part of the new contract.

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CAW won’t agree to strike ban in new Ford deal

Canadian Auto Workers president Ken Lewenza says Ford Canada shouldn’t expect the same concessions that Ford Motor Co. (NYSE:F) won in recent talks with its union in the United States including a ban on strikes over wages or benefits.

“Obviously we watched the U.S. negotiations closely with the UAW because of the competitive challenges we have from one country to the other,” Lewenza said in an interview Friday.

The CAW says Ford Canada intends to slash its Canadian manufacturing presence from 13 per cent to eight per cent of total North American production. Ford currently has no plans to build vehicles at its St. Thomas, Ont., plant beyond 2011.
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CAW Under pressure to make deal with Ford

Pressure has shifted to the Canadian Auto Workers union after Ford Motor Co. struck a concession-laden deal with the United Auto Workers.

Canada must remain competitive with its U. S. neighbour to maintain automotive investment and the union must look at bringing Ford’s labour costs here in line with its American workers — as well as GM and Chrysler — or risk losing jobs, Ken Lewenza, CAW national president, warned Wednesday.

“There is serious pressure. We should not underestimate that we always measure ourselves against the Americans. We always have, we always will,” Lewenza said.

“They are better positioned now than we are,” he said of the UAW deal. “If we do not get an agreement, it will be disastrous.”

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GM plans Caprice police car to rival Ford

crown vic
General Motors Co. will revive the Caprice name as a rear-wheel-drive police car in 2011, expanding the list of competitors to Ford Motor Co.’s ubiquitous Crown Victoria cop cruiser as Ford weighs whether or not to close the Canadian factory that builds the model.

GM said Monday it would bring back the Caprice 15 years after it stopped making it for law-enforcement customers.

The sedan, equipped with either a V6 or V8 engine, will be made in Australia on the same underpinnings as the Ontario-built Chevrolet Camaro. GM says the vehicle’s 112-cubic-foot interior is larger than Ford’s top-selling model.

“We feel like given its product strength, it’s going to be a major player,” said GM spokesman Brian Goebel.

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Ford Canada’s labour costs highest in world

Hourly labour costs at Ford Motor Co. of Canada Ltd. (F-N6.84-0.13-1.87%) manufacturing operations are about $16 (U.S.) higher than similar costs at U.S. plants, sources close to the negotiations between the auto maker and the Canadian Auto Workers union said Friday.

Ford’s labour costs in Canada are higher than those anywhere else in the world, the sources said, meaning it’s difficult to make new investment commitments for its operations, such as the new products the CAW is seeking for a plant in St. Thomas, Ont., that is at the top of the endangered list.

“The hyper-competitive nature of this business globally means you just cannot be the highest-cost labour jurisdiction on the planet and expect those kinds of guarantees,” one source familiar with the discussions said.
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Plant closing means more than loss of jobs

When Ford closes its mammoth St. Thomas assembly plant in about two years – as it’s expected to – the fallout won’t stop with the loss of 1,500 or so well-paying blue-collar jobs. There’s the matter of the millions of tax dollars Ford pays in Elgin County, the hundreds of thousands of dollars Ford workers contribute to the United Way every year and the tens of millions they spend in their communities on homes, cars, groceries, appliances, municipal taxes, entertainment and recreation.
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