It Begins, Ford Cancels Ohio Investment and Shifts to Electric Vehicle Production in Mexico

The United Auto Workers are angered about a decision by Ford to move production of a new electric vehicle from Avon Lake, Ohio, into Mexico.  Ford previously agreed to spend $900 million on a new product line for the Ohio plant; however, according to the UAW the location has shifted.

One way of looking at this change in direction from Ford relates to the cost of producing electric vehicles.  First, it is far less expensive in Mexico (labor, environmental regulation, energy costs, etc); secondly, an outlook the new Biden administration will not strongly enforce USMCA compliance measures against U.S. multinational firms.

The UAW supported Joe Biden, but his policies will likely undermine their workers.  Unfortunately, this was all too predictable.   Partly because Biden-Harris owe Wall Street too much, and the multinationals are once again in control over the U.S. economy.

(Via Reuters) […]  The UAW said Ford in 2019 as part of its four-year contract agreement had committed $900 million for the plant in Avon Lake, Ohio, including a next-generation product to be added in 2023, which the UAW letter said would secure the plant’s “employment well into the foreseeable future.”

Ford issued a statement on Tuesday that did not directly address the union’s criticism but said in a letter to employees on Monday that conditions had changed since 2019.  A company spokeswoman said Ford had invested more than $185 million since 2019 at its Ohio Assembly Plant, including plans to increase capacity to build additional Super Duty trucks. The plant has about 1,600 UAW-represented employees. (story link)