Ford Motor Co. is planning to commence production of its small four-cylinder engine at its Brook Park plant in Ohio, a source told Bloomberg. Ford currently produces the 2-liter engine at its Valencia plant Spain. The move would result to the creation of up to 750 jobs at the Brook Park site, the source added.
Kristina Adamski, a Ford spokeswoman was contacted by Bloomberg but declined to comment on the matter. Ford chief executive Alan Mulally revived the carmaker by overhauling its lineup and boosting the fuel efficiency of models like the Focus compact car. Ford is currently hiring more workers in the US, as the carmaker experienced better sales in the country in 2012.
The carmaker, however, is retrenching in Europe, as new-vehicle registrations in the region shrunk to a 17-year low in 2012. Mike Gammella, president of UAW Local 1250 that represents the Ohio plant’s 1,065 hourly workers, told Bloomberg that the “outsourcing craze” is “com[ing] back around.” He added that outsourcing was not all “it was cracked up to be.”
Ford is one of the latest US companies to reverse shifts in manufacturing to overseas markets because of lower labor costs. Apple Inc pledged last year that it will invest in making Mac computers in the US.
Since 2007, the UAW has agreed to allow carmakers to hire new workers who work for lower wages than more senior employees and forgo retiree health care and pensions in exchange for jobs that would have gone overseas. Since February 2010, around 490,000 manufacturing jobs were created in the US.