VW in talks to use Ford’s plants
REDFORD TOWNSHIP, Mich. — Ford and Volkswagen are in talks about building VW vehicles in some of Ford’s U.S. factories.
VW CEO Herbert Diess told reporters after a meeting at the White House that the automaker is in talks with Ford. The meeting was held Tuesday with executives from VW, BMW and Daimler to discuss trade issues.
Ford CEO Jim Hackett confirmed the VW talks Tuesday, and Executive Chairman Bill Ford said the negotiations are going well. But both said they weren’t ready to announce anything.
Hackett wouldn’t say that Ford has excess factory capacity that could be used to build VWs, but said he is happy with the way his company utilizes its factories.
The announcement comes a week after rival General Motors announced plans to close as many as five plants in the U.S. and Canada, possibly including a Lordstown location, and lay off up to 14,000 white- and bluecollar workers.
VW has said it’s considering a new U.S. factory to build electric vehicles that the company plans for the future.
The company now builds SUVs and the Volkswagen Passat midsize car at a factory in Chattanooga, Tennessee, but imports the rest of its vehicles.
Morgan Stanley analyst Adam Jonas wrote in a note to investors Monday that Ford could lay off as Diess many as 25,000 workers as it restructures to make itself leaner and more able to compete in a changing automotive market that includes electric and autonomous vehicles.
Neither Hackett nor Ford would say if Jonas’ number was too high, but Hackett said the number did not come from Ford.
Bill Ford said it bothers him that many employees are worried about losing their jobs under the $11 billion restructuring, which is to come in several waves starting next year.
“Anytime we do anything that is negative to them or their families I feel it personally,” he said. “We’re taking great care as we go through our business plan to make sure that we engage people early, talk to them, explain to them. If we have to do something we want to do it the right way.”