Ford Motor Company(NYSE:F) is looking forward to shift production of its C-Max hybrids and Focus small vehicles from its Michigan Assembly Plant located near Detroit. The company plans to move the production in 2018, citing the issues automakers are facing in manufacturing fuel-efficient cars profitably in the United States.
The future of one of the company’s largest manufacturing plants is in doubt following the recent announcement. The decision came just few days before leaders and executives at the United Auto Workers(UAW) are about to start discussions regarding a new labor deal. UAW plans to suggest wage increments and oppose company proposals to reduce healthcare expenses.
The second largest US automaker didn’t revealed any information about the region in which it is going to manufacture the next-generationC-Max and Focus. However, Ford reported a couple of months ago that it would make an investment of $2.5 billion on engine and transmission units in Mexico.
The company runs assembly units located in Mexico that produce Fiesta small vehicles and Fusion midsize sedans.
The company’s spokeswoman Kristina Adamski said that production decisions should be made by Ford that enables it to stay competitive. She added that the company is pursuingfuturevehicle substitutes to be manufactured at Michigan plant and will talk about the issue with UAWleadership in the upcoming discussions.
The U.S. government encouraged automakers to make fuel-efficient in the US plants. Michigan plant was among 13 Ford factories that took advantage from a loan of $5.9 billion from the U.S. Department of Energy back in 2009. The company has returned $1.8 billion of that loan.
Ford’s sales declined 17 percent C-Max in the first six months of this year, while Focus sales fell 3 percent. Back in April, the company said that it would cut 700 jobs.
