Ford canceled plans to move production of a SUV from Europe to Kentucky

Article by Christian A., on September 11, 2010

Since currency exchange rates no longer favor US production, sources say that Ford Motor Co. has scrapped plans to transfer the production of a small sport-utility vehicle from Europe to Kentucky.

Ford had made plans next year to move production of the Kuga model to Louisville from Saarlouis, Germany, to benefit from lower labor costs and the weaker dollar.

But the euro is now falling, prompting Ford to decide to continue producing the Kuga in Germany.

This change illustrates the difficulty of lowering Ford’s US labor costs to globally competitive levels. The sources claim that Ford had meant to export up to 80,000 Kugas a year to Europe.

This plan was linked in part to exchange rates and labor concessions Ford asked for last year that UAW members denied. Brian Johnson, an analyst at Barclays Capital in Chicago, said that this “raises issues of how the 2011 contract negotiations will go.”

He said that if the UAW will attempt to try to extract givebacks, Ford will be demonstrating that “it can build wherever it wants.” [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries