Ford to Close Casting unit in USA
Ford Motor Co. is likely to close the casting unit in Cleveland, Ohio, by 2009, thereby adversely affecting approx 1100 hourly workers, as part of its North American strategy. Ford Motor co's losses are estimated to $12.7 billion in 2006. The move is likely to ensure profitability to its North American automotive operations by matching capacity with market demand.
The Cleveland casting plant started operations in 1952 and employs 1,100 hourly and approx 120 regular workers. Ford. produces cast-iron components for engines for Ford trucks and SUVs.
Ford also announced a temporary shutdown beginning in two weeks at its Cleveland Engine Plant for about a year or so. Production could be restarted early only if the market demand shows improvement. According to Ford, its 3.5-liter engine now will be produced at a Lima, Ohio, plant "to improve utilization of capacity and to improve overall productivity." The engine plant employs 530 hourly and 47 salaried workers.
A second engine plant in Cleveland with 700 workers will continue to operate and produce 3.0-liter engines for Ford and Mazda cars and SUVs and for some Jaguar models. With this decision, Ford would have closed a total of 16 North American plants under its strategic plan to ensure profitability.
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