Ford considers adding 10,000 jobs, building Fusion in U.S., report says

[ausrutherford]

Well you just blew a thought I had out of the water. Remember Cautillan built the "new" 650/750 from 2000 to 2004 when Bluediamond was created. Bluediamond's days have to be numbered. I'm sure there is no warm feeling between Ford and Navistar and Navistar's Jim Hebe has declared war in medium duty trucks-plus Navistar is trying to cut Ford's grass in class 4 and 5.

 

Ford has to do something quick-other than folding their tent-

 

I bet they could move that to KTP.

[Bob Rosadini]

I bet they could move that to KTP.

What? And build big trucks again in what was the world's largest heavy duty truck plant.? Agree- I posted such a possible scenario in the "Latest Medium duty" thread. So far none of the product planners have called me for further discussion!

[ausrutherford]

What? And build big trucks again in what was the world's largest heavy duty truck plant.? Agree- I posted such a possible scenario in the "Latest Medium duty" thread. So far none of the product planners have called me for further discussion!

 

I just can't see Fiesta running down the line next to a F-650 lol. Come to think of it, isn't it time for an all-new medium duty?

[2005Explorer]

Although it would be nice to see more jobs come to the US I don't know if I agree with taking the Fusion out of Hermosillo. Quality has been top notch and labor costs have to be low compared to a UAW plant. Now if they feel that the Fusion will sell more then can be produced at one plant then adding a US plant would be a great move. If Lincoln gets it's act together and the new MKZ is really something special and the Fusion continues to gain in sales they will need more production.

 

Sometimes I wonder if a limitation on production is what is holding the Fusion back a little bit. If the product was on the lot there is a real possibility that the Fusion could be battling for first place in midsize sedans.

[vision street wear]

The new full size transit will share some of the components (axles, etc) with the F150 so my guess is it would go KCAP. Could be wrong, but that seems the logical way to go.

[jpd80]

What about shareholder value creation? Will that be dramatic as well?

When the market realizes just how quickly Ford can ramp up when it needs to......

Edited September 29, 2011 by jpd80

[ausrutherford]

because it may not be enough for the continent, or we may want to export to other parts of the world.

 

in addition has ford even committed to build the Mk3 in Argentina/.

Yes, ford has confirmed both the new Focus and the new Ranger for that plant to start up next year.

[jpd80]

Yes, ford has confirmed both the new Focus and the new Ranger for that plant to start up next year.

Which also adds weight to the two Fusion plants theory. With two plants, you can tailor the cars better to the intended markets,

the US gets better more expensive trims while the Latin American vehicles are more affordable with basic, durable interiors.

[jpd80]

Yes, ford has confirmed both the new Focus and the new Ranger for that plant to start up next year.

Which also adds weight to the two Fusion plants theory. With two plants, you can tailor the cars better to the intended markets,

the US gets better more expensive trims while the Latin American vehicles are more affordable with basic, durable interiors.

 

We're seeing that already in the Australian market place with Fiestas from Thailand being offered with hard plastic interiors

but offering more options as standard over their previously German import counterparts...

[ausrutherford]

Which also adds weight to the two Fusion plants theory. With two plants, you can tailor the cars better to the intended markets,

the US gets better more expensive trims while the Latin American vehicles are more affordable with basic, durable interiors.

 

One thing to consider however is that Brazil gets every configuration of the Fusion from the FWD I4 to the I4 Hybrid, so Mexico still has to build every config going into the next model.

[Biker16]

the irony is that the 400 million committed to KCAP Car side, is not enough for a Full flex conversion.

 

Compared to MAP which had a 400 million dollar Flex body shop installed in ~2004 and then gut and convert last year for a Flex final line.

 

I'd bet they would invest in a low-end flex body shop and minor improvements to the chassis and trim line.

 

let not forget that previous to the escape the contour/mondeo was built there.

[jpd80]

the irony is that the 400 million committed to KCAP Car side, is not enough for a Full flex conversion.

 

Compared to MAP which had a 400 million dollar Flex body shop installed in ~2004 and then gut and convert last year for a Flex final line.

 

I'd bet they would invest in a low-end flex body shop and minor improvements to the chassis and trim line.

 

let not forget that previous to the escape the contour/mondeo was built there.

 

I've heard that Ford is less concerned about full flex shops these days and more interested in getting the right products into the right plants

at the right price, that makes far more sense than being able to make more than one vehicle in an array of shops.

[ausrutherford]

I've heard that Ford is less concerned about full flex shops these days and more interested in getting the right products into the right plants

at the right price, that makes far more sense than being able to make more than one vehicle in an array of shops.

 

When you think about it, Ford already has enough flex in NA to take care of a market direction, so right now they need to step away from totally redoing plants, which takes a long time, and focusing on meeting the strong demand they are facing.

[Biker16]

I've heard that Ford is less concerned about full flex shops these days and more interested in getting the right products into the right plants

at the right price, that makes far more sense than being able to make more than one vehicle in an array of shops.

 

that makes sense, but...... flex is more than the ability to build a wider variety of products, its about cutting the costs to retool in half.

 

 

you could a have a more pragmatic view of things, the greatest costs of retooling is in the body shop, by making the body shop flex while not doing a full redo of Chasis and trim you can save money at the expense of Build flexibility. as long as we follow the standardize build Sequencing of all other One ford products going forward, as long as there aren't any clearance issues you can maintain a fair bit of flexibility in each plant. Ala the Genk Belgium plant where the mondeo, S-max and galaxy, where the body shop was updated but not the final line and they still can produce larger minivans on that line too.

[jpd80]

that makes sense, but...... flex is more than the ability to build a wider variety of products, its about cutting the costs to retool in half.

 

 

you could a have a more pragmatic view of things, the greatest costs of retooling is in the body shop, by making the body shop flex while not doing a full redo of Chasis and trim you can save money at the expense of Build flexibility. as long as we follow the standardize build Sequencing of all other One ford products going forward, as long as there aren't any clearance issues you can maintain a fair bit of flexibility in each plant. Ala the Genk Belgium plant where the mondeo, S-max and galaxy, where the body shop was updated but not the final line and they still can produce larger minivans on that line too.

Flex plants were originally intended to allow plants to build completely different vehicles down the line,

Ford has now realized that building similar "families' of vehicles together is more economical.

 

Think about a US CD4 plant that makes:

1. Fusion (25,000)

2. MKZ (2,500)

3. Taurus (7,000)

4. MKS (1500)

 

that's a lot of products, maybe 35,00-40,000/mth, and would free up production over at CAP

where they could bring maybe Flex and MKT there as well making one D3 plant.

That would then free up Oakville for more CD4 Edge/MKX and perhaps S-max as well......

Edited October 1, 2011 by jpd80

[twintornados]

....labor costs have to be low compared to a UAW plant.

Why do you feel it is necessary to consider it a "negative" to use a plant whose workers are represented by the UAW?

[jpd80]

One thing to consider however is that Brazil gets every configuration of the Fusion from the FWD I4 to the I4 Hybrid, so Mexico still has to build every config going into the next model.

If Ford decides to build Fusion in the USA, then there's no reason why Hermosillo has to continue with Fusion after CD3,

they could just delay the switch until the new Mondeo arrives and go with that, offering I-4, I-4 EB and diesels to Latin America.

Edited October 2, 2011 by jpd80

[ausrutherford]

If Ford decides to build Fusion in the USA, then there's no reason why Hermosillo has to continue with Fusion after CD3,

they could just delay the switch until the new Mondeo arrives and go with that, offering I-4, I-4 EB and diesels to Latin America.

 

Mondeo is out of the question for Brazil due to the taxes on importing from Europe. Brazil used to get the Mondeo, but Ford specifically built the Fusion in Mexico so they could switch Brazil to the Fusion and get around the high taxes.

 

Im just saying that Mexico, though it won't build every Fusion, needs to at least build the I4, I4 Hybrid, V6 and V6 AWD (or equivalent with an EB) so Brazil can still have the same models it has now.

[jpd80]

Mondeo is out of the question for Brazil due to the taxes on importing from Europe. Brazil used to get the Mondeo, but Ford specifically built the Fusion in Mexico so they could switch Brazil to the Fusion and get around the high taxes.

 

Im just saying that Mexico, though it won't build every Fusion, needs to at least build the I4, I4 Hybrid, V6 and V6 AWD (or equivalent with an EB) so Brazil can still have the same models it has now.

 

No, you missed what I said, keep making CD3 Fusion at Hermosillo until next Mondeo is ready and then build that at Hermosillo..

Sth America can then have Mexican I-4 engines suitable for ethanol as well as Ecoboost and possibly diesel in lieu of Hybrid...

[FordBuyer]

Detroit papers have stated that part of Ford/UAW negotiating is putting certain trim levels of new Fusion and new MKZ into AA2 plant. Ford has no intention of closing very productive, exceptional quality Hermosillo plant. I figure this is done deal if Ford wants any tentative deal to pass membership. Without this deal, AA2 closes once Mazda leaves. No word yet on what new product goes into KCAP. By trim levels, I assume Ford will build the most expensive (Titanium) Fusion model at AA2 plus the MKZ. Hermosillo will build the Fusion SE and SEL and of course models for South American countries.

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Current Drives:

 

2002 Matador Red Ford Taurus SES Sport

2001 Orient Red Metallic Porsche Boxster

[twintornados]

I have said for awhile now that AAI is a good fit for MKZ since platform mate Mazda6 is already manufactured there....with Mazda vacating the plant, MKZ, Fusion Titanium and possibly MKS could all be built there....moving MKS there would free up room at Chicago for the expected increase in production with Police Interceptor and Utility Interceptor going on-line soon....

[jpd80]

I have said for awhile now that AAI is a good fit for MKZ since platform mate Mazda6 is already manufactured there....with Mazda vacating the plant, MKZ, Fusion Titanium and possibly MKS could all be built there....moving MKS there would free up room at Chicago for the expected increase in production with Police Interceptor and Utility Interceptor going on-line soon....

Assuming that roughly 15- 20% of all Fusion sales will be Titanium, that would mean approximately 3,000 to 4,000 per month

plus MKZ at 1,800 to 2,500 per month makes the whole thing feasible, probably add something like 1,500 to 2,000 jobs there?

With the expected growth in sales, freeing up another 6,000 per month at Hermosillo also makes good sense .

[FordBuyer]

Assuming that roughly 15- 20% of all Fusion sales will be Titanium, that would mean approximately 3,000 to 4,000 per month

plus MKZ at 1,800 to 2,500 per month makes the whole thing feasible, probably add something like 1,500 to 2,000 jobs there?

With the expected growth in sales, freeing up another 6,000 per month at Hermosillo also makes good sense .

 

I would suspect that Auto Alliance would also get the new Fusion and MKZ Hybrid and hopefully bigger production numbers than 1,000/month as in past. With so many battery plants going up in MI, it makes sense to make the hybrids here like with Focus and new C-Max. Also I would assume Ford is planning quite a few future plug-in hybrids and maybe next Fusion is being considered for that application. And don't forget a possible Sport or ST Fusion. So production could possibly approach 100,000+/year eventually. Add in another 100,000 or so Mustangs/year and at least the plant would be close to 70% capacity and profitable with fair amount of new lower paid workers.

 

Current Drives:

 

2002 Matador Red Ford Taurus SES Sport

2001 Orient Red Metallic Porsche Boxster

[Noah Harbinger]

Assuming that roughly 15- 20% of all Fusion sales will be Titanium, that would mean approximately 3,000 to 4,000 per month

plus MKZ at 1,800 to 2,500 per month makes the whole thing feasible, probably add something like 1,500 to 2,000 jobs there?

With the expected growth in sales, freeing up another 6,000 per month at Hermosillo also makes good sense .

 

Also, I wonder if reducing the number of trims manufactured at Hermosillo and decreasing complexity will allow productivity to increase there?

[jpd80]

Also, I wonder if reducing the number of trims manufactured at Hermosillo and decreasing complexity will allow productivity to increase there?

 

Precisely, simplification for intended markets, the low and intermediate trims are probably well suited to Latin American markets

where the US buyers are now looking at more well appointed versions, more luxury and better feel, maybe more soft touch plastic?

Either way, sourcing Fusion for two locations will help in fine tuning inventories, as well as providing more US jobs - it's all good.

 

I would suspect that Auto Alliance would also get the new Fusion and MKZ Hybrid and hopefully bigger production numbers than 1,000/month as in past. With so many battery plants going up in MI, it makes sense to make the hybrids here like with Focus and new C-Max. Also I would assume Ford is planning quite a few future plug-in hybrids and maybe next Fusion is being considered for that application. And don't forget a possible Sport or ST Fusion. So production could possibly approach 100,000+/year eventually. Add in another 100,000 or so Mustangs/year and at least the plant would be close to 70% capacity and profitable with fair amount of new lower paid workers.

 

Those were deliberately low ball numbers on my part, I guess Hybrid production depends on where the best locations are,

but I see that AAI is in Wayne county so it's probably not that far from all Ford's other Hybrid resources either...

 

And then think about a CD4 based Taurus and MKS, that sweetens the pot more by increasing capacity at CAP

for more Explorer and police based vehicles...it's all good IMO...

Edited October 2, 2011 by jpd80