LOUISVILLE, Ky., Dec. 9, 2010 – Ford Motor Company today announced
it is investing $600 million to transform its Louisville Assembly Plant
into a modern, flexible facility that is building the next-generation
Escape for the North America market starting late next year.
The plant is the third North American body-on-frame truck plant
that Ford is re-tooling to enable production of fuel-efficient products
from its global vehicle platforms. Louisville Assembly has been building
the Ford Explorer SUV since 1989.
Ford moved production of the all-new 2011 Explorer to Chicago
Assembly and is overhauling the Louisville facility to build the
next-generation Escape and providing future manufacturing flexibility.
When the transformed Louisville Assembly Plant restarts production
in 2011, it will operate on two shifts with approximately 2,900
employees – up from today’s one shift and approximately 1,100 employees.
The 1,800 additional jobs are expected to be filled through a
combination of transferring employees from other facilities,
re-activating workers on indefinite layoff at the time of launch and
hiring new workers.
“Our Louisville Assembly Plant transformation further proves our
commitment to American manufacturing and our commitment to deliver the
high-quality, fuel-efficient vehicles people really want,” said Mark
Fields, Ford’s president of The Americas. “Working closely with the UAW
and Kentucky officials, we have found a way to competitively deliver an
important new vehicle that is good for our customers and supports our
plan to deliver a well-balanced product portfolio of cars, trucks and
utilities.”
Ford will signal its future direction for the next-generation
Escape through a concept vehicle debuting at the North American
International Auto Show in January.
Later in the year, the plant reopens with tooling and facility
upgrades in its final assembly area and body shop. Reprogrammable
tooling in the body shop will allow the plant to produce multiple
vehicle models at the same time without requiring downtime for tooling
changeover – making Louisville Assembly Plant Ford’s most flexible
high-volume plant in the world.
With this new technology, Louisville Assembly can build up to six
different vehicles at the same time, allowing Ford to meet demand more
quickly in the event of potential shifting customer preferences dictated
by changing economic conditions.
“Manufacturing flexibility is a key to competitiveness, and we are
continually exploring ways to raise the bar in this critical area of the
business,” said Jim Tetreault, Ford’s vice president of North America
Manufacturing. “While we are launching Louisville Assembly Plant with
one key product – the next-generation Ford Escape – we are building in
the flexibility to produce other vehicles at the plant in the future,
depending upon volume requirements, customer preferences and other
factors that affect vehicle demand.”
The Commonwealth of Kentucky and the city of Louisville are key
partners in strengthening the foundation for Ford’s commitment to
American manufacturing in Louisville. Ford's state and local partners
have committed up to $240 million in tax incentives during the next 10
years, based on current and potential future investments and job
creation at the company’s two Kentucky facilities – Louisville Assembly
Plant and Kentucky Truck Plant.
Kentucky's incentives are based upon an initial combined Ford
investment at both facilities of about $800 million – the $600 million
for Louisville Assembly transformation and the previously invested $200
million for accommodating Ford Expedition and Lincoln Navigator
production at Kentucky Truck Plant. The incentive also allows for
additional investment in the future.
“We are grateful to the Commonwealth of Kentucky and the city of
Louisville for their support of Ford and our commitment to manufacturing
here,” Fields said. “With Louisville Assembly Plant up and running next
year, Ford will have nearly 6,600 employees in Kentucky, and the work
we have done together makes this an important manufacturing center of
excellence for us.”
“Kentucky takes great pride in its ongoing partnership with Ford
Motor Company,” said Gov. Steve Beshear. “The transformation of the
Louisville Assembly Plant demonstrates the depth of that relationship
and the tremendous results that can occur when state and local
government and the private sector work together. It is because of our
relationship that the Commonwealth proactively approved an amended
incentive package today that will create the flexibility to potentially
increase Ford's investment and jobs at Louisville Assembly Plant and
Kentucky Truck Plant over time.”
Ford’s investment of $600 million in Louisville Assembly
Plant for production of the next-generation Escape also is supported by
the company’s green partnership with the U.S. Department of Energy.
Louisville Assembly Plant is one of 11 Ford facilities in the U.S.
participating in the Advanced Technology Vehicles Manufacturing
Incentives Programinitiated by Congress and implemented by the Obama
administration. The program is helping to develop advanced technology
vehicles and strengthen American manufacturing across the country.
“Only one word can capture the magnitude of today’s announcement –
WOW,” said Louisville Mayor Jerry Abramson. “Ford is making a
long-lasting investment in the company’s future in Louisville, Kentucky
and a tremendous commitment to our citizens by dramatically expanding
the number of good-paying jobs.”
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