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Home / Business / Ford is said to be switching plans again for underutilized Mustang plants

Ford is said to be switching plans again for underutilized Mustang plants



(Bloomberg) – Ford Motor Co. changes course for the third time in as many years with its Michigan Mustang assembly plant, and nixing plans to create a new model there and gently move production to a factory in Ohio, according to people familiar with the matter.

  New Ford cars occupy lot at Koons Ford dealership in Fairfax, Virginia, July 24, 2013. Ford Motor Co., maker of best-selling F-150 pickup, reported a better-than-expected second-quarter profit Wednesday , driven by truck sales, higher vehicle prices and stronger performance outside of North America's most important business. © Jonathan Ernst / REUTERS
New Ford cars occupy lot at Koons Ford dealership in Fairfax, Virginia, July 24, 2013. Ford Motor Co., maker of the best-selling F-150 pickup, reported better results than expected in Q2 Wednesday, driven by sales of trucks, higher vehicle prices and stronger results outside the major North American businesses.

Ford no longer plans to build electric vehicles next to the Mustangs at the plant in Flat Rock, south of Detroit, according to the people, who asked not to be identified. The product appears to be heading to the automaker in Avon Lake, Ohio, where it is investing $ 900 million to build an unspecified new product in 2023.

United Auto Workers outlined its investment in Ohio Friday in a document highlighting the tentative agreement the union reached with Ford earlier this week. The workers will start voting on the contract on November 4.

About a year and a half after moving production of a future electric sports car to Mexico from Flat Rock, Michigan, Ford said in March that it planned to build other battery-powered models there and add a new shift of workers by 2023. The apparent move to Ohio leaves the factory, which is only the Mustang and Lincoln Continental sedan.

  Ford Motor assembly workers Boyd Burton, left, and Wayne Moshier detailed a 2015 Ford Mustang on the assembly line at Flat Rock Assembly Plant in Flat Rock, Michigan, August 28, 2014. © Rebecca Cook / Reuters
Ford Motor assembly workers Boyd Burton, left, and Wayne Moshier detailed a Ford Mustang 2015 on the assembly line at Flat Rock Assembly Plant in Flat Rock, Michigan, August 28, 2014.

Flat Rock stopped mounting Fusion sedans in 2016. US sales were down 10% for the Mustang and 25% for the continental this year through September.

To keep the underutilized Flat Rock plant open, Ford committed to a "viability strategy" that includes "continuing to explore future opportunities" to find new products for the plant over the next four years, according to the union's document. also including Flat Rock by including it in a moratorium on plant closures and sales during the four-year deal.

To contact reporters about this story: Keith Naughton of Southfield, Michigan at knaughton3@bloomberg.net; Gabrielle Coppola of New York at gcoppola@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester Dawson

For more articles like this, please visit us at bloomberg.com

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