WHAS11 coverage

Governor and Mayor announce Ford future

Read Joe Arnold's latest blog on this story

Ford accelerates transformation plan

More of Joe's blogs on this story

Ford shift to cars to affect both Louisville plants

Louisville, Ky. (WHAS11) - Faced with mounting losses and weak sales of trucks, Ford is accelerating its shift to fuel-efficient passenger cars with moves that save both Louisville Ford plants.

“The company is betting its future success in the auto industry on Louisville Kentucky,” declared Kentucky Governor Steve Beshear to applause at a downtown morning news conference, sentiments echoed hours later by Ford Director of Manufacturing, Bill Russo.

“It’s not often enough these days we get the opportunity for a good news story,” said Russo, adding that this was all good news for the Louisville region.

 
Both Louisville plants are in Ford’s future, but Ford is still offering few specifics especially on exactly what vehicle will replace the Explorer when the once crown jewel of Ford SUV’s is phased out in Louisville in 2010.  We do know the new vehicles will be on what’s called the C platform.

”Several of six C-Car products coming out of Europe, we’ve already previously announced the Transit Connect, the Fiesta and the Focus as the B and C cars coming out of Europe,” Russo explained, “So, it’s going to be one of those.  beyond that, we’re not speaking as to specific products.”

It’s not that Ford isn’t telling us—Russo says Ford doesn’t know yet.

”We’ve not finalized as you know our incentives and some of the aspects regarding the products themselves from a design standpoint.”

But Ford must decide soon, as the automaker needs at least two years lead time to launch a new product.  It appears that despite assurances last year, the Louisville Assembly Plant was in jeopardy of closing until very recently.

“Until today, these plans not set in stone.  And today, they have announced they are definitely investing $100 million in the Kentucky Truck Plant to bring new vehicles here, and at least that and perhaps more money over at the Louisville Assembly Plant,” Beshear said.

“Ford has never made this commitment until today,” added Louisville Mayor Jerry Abramson, “And when we sat in (Ford VP Joe Hinrich’s) office in Dearborn (in April), he said the ‘maybe’s’ and ‘we hope so,’ ‘we’ll see,’ and ‘let’s work together,’ Today, he said ‘it’s going to happen.’ So, the first time in concrete is the commitment from Ford Motor Company.”

Ford had already promised new flex body shops for both Louisville plants in a new national contract signed with the UAW last year.

“Was it in jeopardy when we signed the agreement? No,” said Russo, “We bargained in good faith.  We bargained with the best possible information we had, and again it was a very different market then.

And Ford is expressing some good faith with Kentucky by announcing this commitment now - because the automaker and the state have not finalized a new incentives package to help pay for all these changes.  Unlike the current incentive package for the Kentucky Truck Plant, KY’s economic development secretary

tells me the new incentives will be tied to both Louisville plants.  And those negotiations continue amidst the glad handing.

“We’re not there yet,” Kentucky Economic Development Secretary told WHAS11’s Joe Arnold, “but we are talking about a package that would tie the incentives to the two plants and employment in the community as opposed to one plant versus the other, which is a significant win for us.

“Because we now have a Ford presence in Louisville as opposed to two presences and one that could be jettisoned,” Hindman explained.

So it’s full steam ahead - sort of - as Ford says it’s not sure what exactly will roll off the line here in 2011.

”We haven’t finalized what the various model sub-segments in the focus model would be yet,” said Ford’s Russo, “we’re not releasing that informtion at this stage.”

All parties concerned credited an enduring partnership between Ford, local government and the UAW.