(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.
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.
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 firstname.lastname@example.org; Gabrielle Coppola of New York at email@example.com
To contact the editors responsible for this story: Craig Trudell at firstname.lastname@example.org, Chester Dawson
For more articles like this, please visit us at bloomberg.com
© 2019 Bloomberg LP