Ford-UAW contract to create new jobs, boost sales

Article by Christian Andrei, on October 11, 2011

Ford dealers and employees are bound to benefit from the tentative contract that Ford Motor Co. has with the UAW. The deal would create 5,750 hourly jobs in the U.S. Ford workers would also get more money. Meanwhile, the dealers believe that the additional jobs and cash will help dealers located near Ford factory towns.

Jim Seavitt, president of Village Ford in Dearborn, Mich., said that these wages may return to the company when employees buy a Ford vehicle. Seavitt said that Ford workers comprise his core market area. He said that in the last five years, he lost about 50% of these sales. He also believes it to be an advantage that the contract was settled without a strike.

Ed Witt, owner of Witt Lincoln in San Diego, said that this means that Ford stock will go up and it will make more investments, says Autonews. Consumers will also have a better perception of Ford and Lincoln products. Ford has yet to announce the complete details of this tentative contract, which is subject to a ratification vote by the 41,000 U.S. hourly workers of Ford.

It’s well-known that Ford is committed to invest $16 billion in U.S. manufacturing operations. The union said that Ford is willing to produce the next-generation Ford Fusion sedan in Flat Rock, Mich., in 2013. Ford has also agreed to add Transit Commercial Van production in Kansas City, Mo., and to move medium-sized commercial truck assembly from Mexico to Avon Lake, Ohio.

Topics: ford, uaw, united states

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