Union: Ford pulls investment

New product line now headed to Mexico, letter states

“Unfortunately, Ford Motor Company has decided it will not honor its promise to add a new product to OHAP and, instead, it intends to build the next-generation vehicle in Mexico.” — UAW Vice President Gerald Kariem, in a letter released to members

A $900 million investment by Ford in Lorain County is no more, according to a letter penned by UAW Vice-President Gerald Kariem on March 12 and released to members.

In the letter, Kariem states a planned investment in a new product line at Avon Lake’s Ford Ohio Assembly Plant set to begin in 2023 no longer would go forward with Ford planning to instead shift this production to Mexico.

“Unfortunately, Ford Motor Company has decided it will not honor its promise to add a new product to OHAP and, instead, it intends to build the next-generation vehicle in Mexico,” Kariem wrote.

The union will fight the decision, he wrote.

Kariem also blasted Ford leadership for threatening American jobs and the economic well-being of their members.

“Ford management expects us to just hang our heads and accept the decision,” he wrote. “But let me be clear, we are making a different choice.

“We 100% reject the company’s decision to put corporate greed and more potential profits over American jobs and the future of our members. We expect the company to honor its contractual commitments to this membership, and when it fails to do so, we will take action.”

Avon Lake Economic Development Director Ted Esborn said March 16 the city could not confirm Ford’s plans and have been in contact with Ford officials gathering additional information.

However, Esborn said an announcement from Ford is expected imminently.

“I think here in Avon Lake, if only out of wishful thinking, we’re sort of taking this one step at a time to, kind of wait and see,” he said. “The biggest piece that we’re waiting for is just something from Ford that responds to the UAW letter to its members.”

The news announced March 12 in the letter was very concerning to city officials and is a possibility that they have been prepared for since November 2019, but continue to wait for official confirmation from Ford, Esborn said.

At this time, the city has been in contact with its partners with the state of Ohio, Lorain County commissioners and their partners at Team NEO in assessing their next steps, he said.

Avon Lake enthusiastically was anticipating the new Ford product line, but thankfully, it was not relying on it financially, Esborn said.

In conversations with Ford, he said officials have relayed to them that there are no plans for reductions at the plant.

At the time of the original announcement of the investment in November 2019, Avon Lake Mayor Greg Zilka called the investment a “game changer” with the potential to add 1,500 jobs to the city.

A description of Ford’s commitment in the UAW document under “Product and Investment” at the time stated a new product line was set be added in 2023 along with maintaining the plant’s medium truck, E-Series Cutaway and Stripped Chassis lines. It will be complemented by an all new Super Duty Chassis Cab line.

On March 16 at a Senate Finance Committee hearing, U.S. Sen. Sherrod Brown (D-OH) pressed Ford on its reported decision to break its commitment to Ohio workers and shift production to Mexico.

During the hearing, Brown called on the company to honor its commitment to Ford workers in Ohio and produce the new product at its Avon Lake plant.

“Clevelanders turned on the local news and saw headlines about yet another American corporation deciding to build things in Mexico instead of Ohio,” he said. “Ford had made a 2019 commitment to invest $900 million in the Ohio Assembly Plant in Avon Lake, Ohio – an investment they promised would create more than 1,500 jobs.

“Ford announced instead that it has decided not to honor that promise, but instead build its next generation vehicle in Mexico. The decision to turn its back on the community is just unacceptable.”