Analysts say that the Ford-UAW pact will not relieve vehicle shortages

Article by Christian Andrei, on September 30, 2011

Analysts anticipate that the tentative deal that may be entered between Ford Motor Co. and the UAW for a new four-year contract will include a major commitment to U.S. jobs. However, this doesn’t automatically mean that there will be an added production boost for popular vehicles that are currently in short supply.

Analysts believe that an agreement to move additional Ford Fusion production from Mexico to an under-used plant in Flat Rock, Mich., may be the most striking portion of a new labor contract that will have an impact on vehicle supplies.

Sources told Autonews that the talks include the potential of moving Fusion production to the U.S. The union anticipates that a deal will be agreed on this week. Michele Martin, UAW spokeswoman, said that UAW President Bob King has been engaged in talks with Ford everyday this week. She didn’t say if the talks are expected to be concluded this week.

Tony Vultaggio, the president of UAW Local 228 in Sterling Heights, Mich., said that several subcommittees are done with the working-level talks outside the core questions related to Ford’s worker compensation. Ford has a plan set for the vehicles to be built in its U.S. factories. Of course, we all know that having future product commitments are helpful in selling contracts to the rank-and-file.

Topics: ford, uaw

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