Blue Oval invests $1.5 billion, adds 1,800 jobs to 7,000 existing in the state
By Terry Troy
Ohio continued its drive toward electric vehicle (EV) manufacturing dominance, with last week’s announcement by Ford that it will invest $1.8 billion to its Ohio manufacturing facilities while adding 1,800 new union jobs to its existing employment tally of more than 7,000 in the state.
The jobs and facility upgrades will be made predominantly at the Ohio Assembly Plant in Avon Lake, which currently manufactures the Ford E-Series, the Ford Super Duty and the Ford F-650 and F-750. The new jobs will build an all new EV commercial vehicle, starting mid-decade. There will be an additional 90 jobs and $100 million investment between the Lima Engine and Sharonville Transmission plant.
“The ingenuity and talent of Ohio’s automotive workforce is second to none, and Ford’s investment in Avon Lake will play an essential role in growing the EV space,” said Ohio Governor Mike DeWine. “Ford has been a partner in Ohio for generations, and its confidence in the Ford Ohio Assembly Plant operations secures EV operations in Lorain County that will be critical for decades to come.”
The investment in our state is a part of a much larger national investment by the Blue Oval and the United Auto Workers (UAW), adding more than 6,200 new manufacturing jobs in the Midwest, while converting nearly 3,000 temporary UAW-Ford workers to full time status and providing all hourly employees healthcare benefits on the first day of employment.
These actions – which come more than a year ahead of 2023 contract negotiations – are part of the company’s Ford+ growth strategy and include plans for an all-new global Mustang coupe and Ranger pickup for North America, as well as an all-new electric commercial vehicle for Ford Pro customers. In total, Ford is investing $3.7 billion across its facilities in Ohio, Michigan and Missouri. The company expects to create an estimated 74,000 additional indirect non-Ford jobs, according to a 2020 study by BCG on the economic impact of F-Series production.
“Ford is America’s Number 1 employer of hourly autoworkers, and this investment only deepens our commitment to building great new vehicles – from an all-new Mustang to new EVs – right here in the U.S. in partnership with the UAW,” said Bill Ford, executive chair of Ford. “I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.”
These actions come a year after the company detailed its Ford+ plan to transform its global automotive business, accelerating the development and scaling of breakthrough electric, connected vehicles, while leveraging iconic nameplates to strengthen operating performance and take full advantage of engineering and industrial capabilities.
The UAW and Ford broke with convention by not waiting until formal UAW contract negotiations to announce new vehicles, plant investments and workplace improvements to continue scaling operations to deliver on customer demand. The current UAW contract expires in 2023.
“We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles and continue our Ford+ transformation,” said Ford President and CEO Jim Farley. “Transforming our company for the next era of American manufacturing requires new ways of working, and together with UAW leadership, we are leading the way and moving fast to make improvements to benefits for our hourly employees and working conditions for our factory teams.”
Ford plans to invest $1 billion over the next five years to continuously improve the workplace experience for manufacturing employees. As a result of discussions with the UAW, Ford is taking steps to identify and address the top wants and needs of employees. Potential enhancements include better access to healthy food, new EV chargers in plant parking lots, better lighting in parking lots and more. While improvements will differ by plant, this is the first phase of workplace changes, with more to come.
“In many ways, Ford is America’s automaker and our relationship with the UAW is essential to our success,” said Kumar Galhotra, president, Ford Blue. “Our frontline manufacturing employees are the key to delivering what our customers want more of – amazing new electric vehicles like the F-150 Lightning as well as must-have internal combustion-powered vehicles like the forthcoming all-new Mustang coupe.”
“This announcement is a testament to UAW members who contribute their skill, experience and knowledge to the success of Ford Motor Company,” said UAW President Ray Curry. “We are always advocating to employers and legislators that union jobs are worth the investment. Ford stepped up to the plate by adding these jobs and converting 3,000 UAW members to permanent, full-time status with benefits.”
“The essential necessity of quality healthcare and full-time employment are longstanding principles that have been communicated to the company by the UAW International Union and our UAW local unions since our inception,” said Chuck Browning, UAW vice president and director, Ford Department. “I applaud the actions of Ford Motor Company to address these issues outside the realm of collective bargaining. These unprecedented steps taken by Bill Ford and CEO Jim Farley are both a refreshing and innovative approach to labor relations that delivers great benefit when most needed by our hardworking members.”
Ohio has played a key role in Ford’s history for more than 70 years.
