Thursday, February 7, 2019
Ford spends $1 Billion and adds jobs to the U.S
Ford plans to spend $1 billion on the expansion of the redesigned Ford Explorer and Lincoln Navigator. The company is shifting their focus to sport utility vehicles (SUV's) and because of this, is cutting jobs overseas, and adding some back to Chicago. This addition of jobs brings the total employee number to 5,800 employees in the Chicago plant.
Ford is also building a new body shop and paint shop at the assembly plants, there are also plans to make major changes to the final assembly area. The company also plans to install some new manufacturing technology, including 3D-printing tools and robots.
Throughout this expansion, Ford has struggled to remain in good standing in Europe and is therefore cutting their jobs there. The reason I thought this article was important and tied to our class is mainly because of how Ford transcends over different economic systems. Expansion in the US comes at a price for European workers, but its obvious that the disparity in systems and inability to compete overseas is causing Ford to make this decision. Having been to Europe multiple times, you can see the extreme competition is causing Ford to make crucial decisions.
Attached is the link to the article. This also could indicate future economic concerns about US companies overseas, or maybe this is solely industry related.
https://www.cnbc.com/2019/02/07/ford-investing-1-billion-into-chicago-factories.html
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3 comments:
Antonio, I think it would be interesting to understand more of why Ford was struggling to remain in good standing in Europe. I also wonder how much of an effect this might have on both the US's economy and the European economy. There are so many car companies across the world that it does not surprise me that one is struggling to maintain efficiency while complying with standards.
Yeah its definitely interesting because Ford is such a big name to us. Although, compact cars are much more popular in Europe and if they are steering away from producing them for domestic customers then it ultimately makes sense that they'd rather focus on SUV's in the US. We'll see how this goes for them, US car markets have also been on the ride since 2008 era but it seems like it could slow down here soon.
Antonio, I think it is interesting that Ford would be bringing in more employees during the time that a recession seems to be coming. I also think it is interesting, because based on my article posted, many Americans are behind on their car payments, so it seems like the debt will continue to pile on.
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