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Ford To Close Wixom Assembly

The Ford Motor Co. said last Monday that it will close its Wixom assembly plant this month. This move is the effect of Ford?s massive restructuring plan which is designed to cope from their previous losses.

The Detroit automaker also wil
l close its casting plant in Brook Park, Ohio, outside of Cleveland, in 2009. At present, the plant employs 1,218 hourly and salaried workers. The company also will idle the Cleveland Engine Plant one in Brook Park for about a year starting in two weeks time. The plant employs 577 workers. To ensure that engine manufacture operations will not be affected, a second plant situated at the complex, west of Cleveland, will remain open.

The engine plant manufactures 3.0-liter V-6 engines. It was being retooled to produce a larger 3.5-liter engine. But Ford said the plant was not needed at present due to market conditions and because the same engine already is made at a plant in Lima, Ohio.

The casting plant of the automaker is the 10th facility to be subjected to closure as part of Ford's "Way Forward" restructuring plan. The plan will close a total of 16 facilities by 2012. By far, the automaker has announced nine of the closures.

Ford, which lost $12
.7 billion in 2006 and $282 million in the first quarter of the year, is in the middle of cutting thousands of jobs and rolling out new products in an effort to complement the declining demand for its products.

The casting plant, responsible for the manufacture of crankshafts for Ford's four-cylinder engines, bearing caps, engine blocks and other items, is being closed because the automaker is getting out of the casting business to save money and concentrate more on engines, Accel parts, transmissions and other auto parts, accessories and equipment. This strategy is aimed at attracting more customers.

Eventually the company will have outside parts suppliers make all of its castings, said Joe Hinrichs, the company's vice president of North American manufacturing. He added, ?These are difficult actions, and we're approaching them with great sensitivity because they involve our people.?

?However, operating an efficient and competitive manufacturing business is a key to our Way Forward plan to transform our business back to sustained profitability." He stressed, ?Ford retooled Cleveland Engine 1, because it expected, based on previous forecasts, that more 3.5-liter engines would be needed.?

"Obviously the volume hasn't materialized," Hinrichs stressed. "You have to align your capacity with the current demand that you have." He added Ford expects the engine plant to reopen by next spring, but with fewer employees as the nation's No. 2 automaker tries to become more efficient.

He also intimated the net job loss from Monday's announcement should be the 1,100 hourly workers at the castings plant. Salaried workers at the plant will be offered opportunities elsewhere in Ford, he said. ?The company will repeat its buyout and early retirement offers to all workers at the Brook Park complex. So far about 25,000 workers for Ford and a holding company that is running some plants it intends to close or sell have left the company under the program.?

Last September, the automaker said that it was closing a stamping plant in Maumee, near Toledo, that has 680 workers and in January 2006, the automaker said it was closing a transmission plant in Batavia, near Cincinnati, with 1,445 workers. Both plants are set to close in 2008.

Additionally, Ford has said that by the end of 2008 it would close or sell all facilities that it took back as part of a bailout of Visteon Corp. The decision of the automaker will affect the component plant in Sandusky, Ohio. The plant employs 1,700 workers.
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Mike Bartley, 49, is a professional automotive journalist domiciled in Irvine, CA. He travels from one state to another to cover the hottest auto shows, racing events and automotive revelations. His penned compositions cover press releases, reviews, and suggestions. Where the auto action is, that?s exactly where you can find Mike. You can visit Accel for more information.

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