Cheap UAW labor

[Ohio XB]

I mentioned this in another topic so I thought I would find something and make a new thread about it.


I never expected this, but because of all the concessions the UAW has given Ford over the past 5 years, and also the weakening dollar against the Euro, Ford is moving production of the Kuga to the US for export to Europe. Here is just one article about it...

Ford may build Kuga in US – potentially export to Europe
10/23/2009, 6:15 AMBy Mark Kleis

In what is most likely meant to be a very visible display of Ford’s intentions to deliver on their promises to the UAW over recent contract concessions, several sources close to Ford confirm a future for the Kuga in the US.


LeftLane reported in early March, 2009 that Ford could likely move Kuga production to US soil due to a weak dollar. Now, with the dollar hitting record lows several sources close to Ford, speaking with anonymity, have released that Ford is likely to produce the Kuga at the Louisville, Kentucky assembly plant beginning in 2011.

Previous reporting was based on the speculation that Ford may introduce the Kuga to the US market at all, with or without its current nameplate, and purely for North American consumption. Now sources close to Ford have announced that it will be capable of producing and exporting as many as 80,000 C-platform based vehicles (Such as the Kuga) to the European market each year from the Louisville, Kentucky Assembly plant.

This unique change is explained by Barclays Capital auto analyst Brian Johnson, “This makes sense because western Europe is not a particularly cheap place to make cars.” Brian goes on to explain that Ford’s net labor costs could be $10 an hour lower in the US than in Germany.

The potential shift of production location to the US due to the weakening dollar makes an even stronger business case for Ford to expand its “One Ford” business model and begin selling the Kuga platform, Kuga name or not, here in the US.

Nevermind the "may build..." part, it is going to happen.


Steve