The Michigan assembly plant was formerly the production site for the Ford Expedition and Lincoln Navigators sports utility vehicles (SUVs). This plant is one of three North American light truck plants the company is retooling to build fuel-efficient global small cars in the future. The new Focus will start rolling off the line in 2010.
As part of the retooling, the company will combine its operations from Wayne Assembly Plant. When production unveils in 2010, about 3,200 employees will be building the new Focus at the Michigan Assembly Plant. At the plant, Ford Motor and United Auto Workers are developing modern new operating practices to ensure the high quality and even advanced efficiency.
The transformation of Michigan Assembly Plant embodies the larger transformation under way at Ford, stated Alan Mulally, president and chief executive officer of Ford Motor. This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles. It is about leveraging our expertise and vehicle platforms around the world and partnering with the UAW to deliver best-in-class global small cars. It is about skilled and motivated teams working together in new ways to create the future of automobile manufacturing in the United States.
The renovation of Michigan Assembly is rooted in the fundamental strategic shift by Ford Motor to leverage its global assets to bring six small cars to the US market by the end of 2012. To produce the vehicles, the company is converting three truck and SUV plants to car plants, Michigan Assembly, Cuautitlan Assembly in Mexico, which starts building the new Fiesta subcompact early in 2009; and Louisville Assembly, which will be converted to produce small vehicles from company’s global Focus platform starting in 2011.
The new Focus is being developed in Europe for a new global C-car platform. Over time, the new platform will be the basis for over two million units annually around the world, incorporating Focus and other derivatives, enabling the company to leverage economies of scale to enhance investment efficiency.
The Focus battery-electric vehicle, which is being developed in partnership with Magna International, features a high-voltage electric motor powered by a high capacity Lithium Ion battery pack and charged by plugging in to a 110-volt or 220-volt outlet.
The vehicle is a part of a strategy the company announced in January 2009 to develop electric vehicles for North America quickly and affordably by leveraging its global platform capability.
Additionally to the Focus battery electric vehicle, Ford Motor is collaborating with Smith Electric to sell a Transit Connect battery electric commercial vehicle for North America in 2010. Ford Motor’s product plans also incorporate a new hybrid vehicle in 2012 and a plug-in hybrid vehicle in 2012.
We’re changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles, stated Mark Fields, Ford Motor’s president of The Americas. As customers move to more fuel-efficient vehicles, we’ll be there with more of the products they really want.
Investing in US manufacturing:
The $550 million investment in Michigan Assembly incorporates over $430 million in manufacturing investment at the site, and also $120 million for launch and engineering costs. In addition, the company will be making considerable investment in supplier tooling to support the plant.
The State of Michigan, Wayne County and the City of Wayne contributed over $160 million in tax credits and grants to support Ford Motor’s expansion opportunities. Key elements include:
Tax incentives based on job retention at the site;
A Brownfield tax incentive for economic rehabilitation of the site;
Tax incentives to support integration of advanced batteries into new product development programs; and
Local property tax incentives for new investments at the site.
Michigan Assembly Plant will be designated as state’s first automotive technology anchor site. This designation will support Ford Motor’s efforts by offering additional tax incentives to locate advanced technology suppliers in Michigan, associated to future automotive technology applications.
Ford is investing in both the future of the American auto industry and the state of Michigan by bringing together world-class products, advanced technology applications and strong partnerships with the UAW to build the next generation of vehicles that will help end our nation’s dependence on foreign oil, added Granholm. In these challenging economic times, we applaud and appreciate Ford’s commitment to Michigan and to our talented workforce.
Michigan Assembly Transformation:
At the heart of the plant’s manufacturing transformation is a flexible body shop operation, which uses reprogrammable tooling in the body shop, standardized equipment in the paint shop and a common-build sequence in final assembly, allowing production of multiple models in the same plant.
Helping in the implementation of flexible manufacturing is Ford Motor’s virtual manufacturing technology. In the virtual world, engineers and plant operators evaluate tooling and product interfaces before costly installations are made on the plant floor. This method of collaboration enhances launch quality and allows speed of execution.
In a flexible body shop, at least 80% of the robotic equipment can be programmed to weld various sized vehicles. This non-product specific equipment gives the body shop its flexibility and offers more efficient use of the facility.
The plant also will employ an efficient, synchronous material flow, where the material will move in kits to each operator, providing employees with the tools they require in the sequence they will need them. The plant features an integrated stamping facility, which allows the stamping and welding of all large sheet-metal parts on-site, ensuring maximum quality and minimum overhead.
Modern Work Rules:
Along with the physical transformation at Michigan Assembly Plant, the UAW and Ford Motor are working on a framework of new and class-leading operating practices that will enable the plant to operate at a high level of productivity while producing best-in-class quality products in a safe work environment.
As part of this framework, Ford Motor and the UAW are committed to establishing a strong, progressive culture at Michigan Assembly Plant that is based on teamwork, joint problem solving and continuous improvement.
The UAW is a key partner in enabling us to build these world-class vehicles competitively in the United States, stated Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs. This agreement will allow the work force to build on their quality commitment while improving productivity at the plant.
