Ford will invest $1.6 billion in two U.S. factories
By Joseph White
DETROIT (Reuters) - Ford Motor Co will invest $1.6 billion in two U.S. factories to start making a new automatic transmission and expand output of certain commercial trucks, the company said on Tuesday.
Ford said the moves would support a total of 650 jobs but would not say how many new ones would be created.
The announcement comes three weeks after Ford said it would spend $1.6 billion to build a new vehicle assembly plant in Mexico, drawing fire from Republican U.S. presidential candidate Donald Trump.
Ford has countered that it intends to invest $9 billion in U.S. factories, as outlined in the company's 2015 contract with the United Auto Workers union.
The larger of Ford's latest U.S. investments will be $1.4 billion for a production line at a Livonia, Michigan, factory to produce a new 10-speed automatic transmission for the company's rear-wheel-drive vehicles.
The Livonia plant currently employs about 1,550 hourly and salaried workers in total. The new 10-speed transmission line will employ about 500 union workers, Ford said.
“Most of the people will move from building one transmission to another,” Joe Hinrichs, president of Ford’s Americas operations, said in an interview.
The United Auto Workers said last fall that Ford planned to spend as much as $1.8 billion overhauling that factory to produce three new transmissions. Continued...