Friday, October 23, 2009

U-S-A! Ford reportedly moving production of Kuga to America


Ford is currently awaiting the ratification of a new labor deal that would put labor costs of the Dearborn, MI-based automaker on a nearly equal footing with General Motors and Chrysler. A major tenet of the negotiations is the guarantee of new product to build in U.S. assembly plants, effectively giving 41,000 blue collar Ford employees some much needed job security. A summary of the tentative agreement between the UAW and Ford reportedly states that the Louisville facility will receive a new product with "considerable export volume," so it's not a far leap to surmise that the Kuga will become Kentucky born and bred.

At this point, Ford has only announced that the Louisville plant will receive a more fuel efficient product based on Ford's global C platform. The Kuga certainly fits that bill, and building the small crossover in the good ol' US of A makes financial sense right now since the dollar is worth less than the euro or British pound, and labor costs in the U.S. could be $10 per hour cheaper than they are in Germany, for instance.

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