The United Auto Workers have ratified a new four-year labor agreement with Ford by a two-to-one margin. The deal will see the automaker add 12,000 hourly jobs over the course of the term by bringing some production back into the U.S. from overseas. The agreement will also see Ford invest $16 billion in domestic product development and manufacturing during that time, as well. The automaker says that it will increase production by adding another shift at its Auto Alliance International, Michigan Assembly, Chicago Assembly and Louisville Assembly facilities to prepare for projected increased demand for fuel-efficient vehicles.

Ford has also indicated that the company will move production of the F-650 and F-750 medium-duty commercial trucks from Mexico to its Avon Lake, Ohio facility once that plant stops making the current E-Series. The move will put an end to Ford's 10-year partnership with Navistar International. The two companies currently produces the medium-duty F-Series trucks in Escobedo, Mexico under the Blue Diamond LLC joint venture.

The ratification comes after a few worrisome days when it appeared that Ford could have faced its first strike in decades. Though the company's Chicago Assembly plant rejected the new labor agreement, the UAW Local 600 endorsed the deal earlier this week. Hit the jump for the full press release.
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UAW-Ford National Labor Agreement Ratified By Members; Capacity Actions, New Product Sourcing Plans Confirmed

UAW-Ford employees in the U.S. ratify a new four-year labor agreement by nearly a 2-to-1 margin, helping to improve the company's competitiveness in the U.S.

Ford is adding 12,000 hourly jobs in its U.S. manufacturing facilities by 2015, including in-sourcing from Mexico, China and Japan

Ford is investing $16 billion in its U.S. operations – including $6.2 billion in U.S. plants – to design, engineer and produce more new and upgraded vehicles and components by 2015

Production shifts planned to be added at four U.S. plants: Michigan Assembly Plant in Wayne, Mich.; Chicago Assembly Plant; Louisville Assembly Plant; and Auto Alliance International in Flat Rock, Mich. The additional shifts will account for nearly 5,000 of the 12,000 total jobs Ford has committed to add in the next four years

Medium-duty trucks in-sourced from Mexico; motor home and stripped chassis added to Ford E-series cutaway production at Ohio Assembly Plant in Avon Lake, Ohio, after the plant ends E-Series van production

DEARBORN, Mich., Oct. 19, 2011 – Ford Motor Company today confirmed that a new national labor agreement has been ratified by UAW-represented employees in the U.S. The agreement covering approximately 41,000 employees improves the company's competitiveness in the U.S.

Ford is adding 12,000 hourly jobs in its U.S. manufacturing facilities through the four-year term of the contract, including in-sourcing work from Mexico, China and Japan. The company also is investing $16 billion in its U.S. product development and manufacturing operations – including $6.2 billion in plant-specific investments – by 2015.

"This agreement is proof that, by working together with our UAW partners and local communities, we can significantly create new jobs, invest in our plants and people, and make a very positive impact on the U.S. economy," said Mark Fields, Ford Motor Company's president of The Americas. "Our agreement is fair to our employees and it improves our competitiveness in the U.S."

Matching Capacity with Demand

The new investments and added jobs are designed to help Ford better meet current and anticipated future demand for its vehicles. Ford plans to add production capacity and new vehicles in several of its U.S. facilities, including at four U.S. assembly facilities.

Auto Alliance International in Flat Rock, Mich., Michigan Assembly Plant in Wayne, Mich., Chicago Assembly Plant and Louisville Assembly Plant each will add a new production shift, resulting in significant volume increases for the fuel-efficient vehicles built there.

The added production comes on the heels of strong U.S. sales in September. Ford Explorer sales were up 204 percent versus a year ago. The Ford Escape set a new sales record, up 41 percent versus September 2010 and up 32 percent year to date. Ford Fusion sales are up 17 percent year to date, after setting monthly sales records for 11 of the last 12 months. The new Ford Focus is highly popular with consumers but has been constrained by availability. The added shift will allow Ford to continue to meet strong demand for Focus and other new products at Michigan Assembly Plant.

"Customers are taking notice and responding very positively to Ford's lineup of fuel-efficient, high-quality and innovative products," said Fields. "Working with the UAW, we now will be better able to meet the growing demand."

The planned production growth at the four facilities will increase U.S. jobs by nearly 5,000 – 1,200 at Michigan Assembly Plant, 1,200 at Chicago Assembly Plant, 1,300 at Louisville Assembly Plant and 1,200 at AAI. All are part of Ford's plan to add 12,000 U.S. hourly jobs in the next four years.

Bringing New Products to Market

Ford's new national labor agreement also brings new products to U.S. plants. For example, Ford is moving production of the Ford F-650 and F-750 medium-duty trucks from Escobedo, Mexico, to its Ohio Assembly Plant in Avon Lake, Ohio, after the plant stops current production of the Ford E-Series vans. The company also is bringing F53 motor home chassis and F59 commercial stripped chassis production in-house, investing $128 million in the Ohio facility.

The medium truck manufacturing shift will make Ford the only U.S. full-line manufacturer of Class 6 and 7 medium-duty vehicles. It also marks the end of a decade-old Blue Diamond Truck LLC joint venture between Ford and Navistar International, which currently manufactures Ford F-650 and F-750 trucks in Mexico for customers across North America.

"By moving our commercial vehicle production in-house, we will be able to streamline and strengthen the engineering and manufacturing of our next-generation medium-duty trucks," said Fields.

Production of Ford's E-Series, currently built at Ohio Assembly Plant, will continue to be available in certain variations through most of the decade. A new full-size van called the Transit – slated for production beginning in 2013 at Ford's Kansas City Assembly Plant in Kansas City, Mo. – also will be introduced for Ford's commercial van customers in North America.

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    • 1 Second Ago
      • 3 Years Ago
      I'm glad the contract was ratified. American cars being made in America by Americans: good all around.
        That Kid
        • 3 Years Ago
        Why do so few people see it this way though? How is the UAW winning a contract that will allow well-paid American workers to produce HD trucks, Ford Fusions and other products that are presently being made in Mexico and elsewhere bad for anyone? Less money sitting around to give to the executives??
      • 3 Years Ago
      What Lorene doesn't tell you is her best friend's mom does "webcam" (wink,wink) work...
      • 3 Years Ago
      z chicicigoa?  Tarus Sabell an ZMM?  MAYBE TEH WANT NRWE PORDUCT?
      Philip M'Rear
      • 3 Years Ago
        • 3 Years Ago
        @Philip M'Rear
        Really? After they passed the contract you people pissed and moaned about to the tune of over 200 comments when autoblog ran the fluff piece suggesting that they wouldn't pass it? Get over yourself. It passed, not that anyone cares.
      • 3 Years Ago
      • 3 Years Ago
      • 3 Years Ago
      I am a 10+year ford/uaw member and employee and today im embarrassed to admit that. Today workers recieved their much deserved and hard fought signing bonus for the new contract ratification, well almost all workers.As ive found out that 30 workers( out of 40,000+) with over 10yrs of dedicated service will not recieve the bonus they deserve because they were laid off before the contract talks started and therefore dont recieve their bounuses. And the response from their U.A.W reps was.. nothing they can do, sorry for your luck. When Ford and the U.A.W asked for help from its workers 4 yrs ago in turning this company around we answered the call, EVERYONE of us, and to intentionally screw 30 employees out of their deserved bonuses is wrong and for our U.A.W reps to let it happen is even worse. Long term temporary workers recieved bonuses but not our own union brothers and sisters who were involuntarily laid off is embarrassing. We as a union pride ourselves on sticking together, or at least i thought we did. These hard working employees from local 400 arent good enough to get their bonus but they are good enough for the U.A.W to still take union dues out of thier unemployment checks. Its time we stand up for our union brothers and sisters and get these workers their bonuses and prove to that we do care about one another and we will fight for whats right. For Ford (a multibillion dollar) company to screw 30 of its workers and thier families out of their bonuses they deserve for the hard work over the last 4yrs is sad. CONGRATS FORD YOU SAVED SOME POCKET CHANGE AND IT SAVED THE U.A.W REPS THE HASSLE FOR FIGHTING FOR ITS WORKERS. I ask you and our members, if theyll do it to these people whos to say your not next. Lets call and write local 400 in utica , michigan and fight for our brothers and sisters and show Ford and the U.A.W that without ALL of us they dont survive. UNITED WE STAND DIVIDED WE FALL. PLEASE CONTACT LOCAL 400 PRESIDENT JIM CAYGILL IN UTICA MICH ( 586 731 6270) AND SUPPORT OUR BROTHERS AND SISTERS IN SOLIDARITY
      • 3 Years Ago
      Wow. Doesn't take the spammers long to post. So the new package adds 1,200 jobs to Chicago with an additional shift, but Chicago was one of the sites voting against the package. I really, really wonder what it was about the package that they didn't like. I hope it wasn't simply, "Well, 1,200 isn't enough. We want 1,500."
        • 3 Years Ago
        No, it wasn't that 1200 new jobs wasn't enough; the locals that were receiving additional shifts were voting down the contract because their over time would be reduced. They didn't care about Ford bringing in more jobs, they just cared about themselves...
      • 3 Years Ago
      This is truly Fantastic! Glad to see American companies actually invest in American production. I Hope all goes well with Ford, GM, and Chrysler. As much as Union haters, import lovers, and bailout whiners dislike them, WE do need the Auto Industry in America.
        • 3 Years Ago
        Yup. Worked out well for Britain. The union will kill the traditional Americcan auto industry in this country in time. Only thing left will be foreign companies unless the union ruins them too.
      • 3 Years Ago
      What do the buiilld at chicigao? Taurus Sable and MMZ? MAYBE THE WANT NEW PRODUCT?
      • 3 Years Ago
      The big question is..what becomes of the Econoline???
      • 3 Years Ago
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