Ford to Invest $75 Million in Michigan Truck Plant

Detroit Free Press

Aug. 26--Ford Motor Co., which has lost $8.6 billion through the first half of this year because of falling sales, especially of large trucks, will invest $75 million in Michigan Truck Plant's body shop to prepare for small-vehicle production.

While the company announced the amount of the investment today, Ford revealed its plans in July to convert several truck plants, including Michigan Truck, which builds the large Ford Expedition and Lincoln Navigator, to car plants.

Michigan Truck Plant in Wayne will begin converting its body shop in November. The tooling and equipment specific to the Ford Expedition and Lincoln Navigator will be disassembled and transferred to the Kentucky Truck Plant, which begins producing the large SUVs in the second quarter of 2009.

The move paves the way for Michigan Truck to convert to a car plant that will begin producing global C-car based vehicles in 2010.

In the interim, the plant's 1,000 employees will be transferred next door to Wayne Assembly Plant where a third crew will be added in January to accommodate increased production of the hot-selling Ford Focus.

When completed, Michigan Truck's flexibility will allow it to augment current Ford Focus production if necessary.

"This is the best plan to meet consumer demand and utilize our assets at Michigan Truck and other facilities, both in the near term and long term," Joe Hinrichs, Ford group vice president, Global Manufacturing and Labor Affairs, said in a statement today. He was slated to meet with journalists mid-day to discuss the plans.

"Consumers," he added, "will benefit through increased production of the strong-selling Focus at Wayne, the continuation of the popular Expedition and Navigator for those who need a large SUV at Kentucky Truck, and more world-class C-cars at Michigan Truck."

Contact Sarah A. Webster at (313)222-5394 or swebster@freepress.com.

To see more of the Detroit Free Press, or to subscribe to the newspaper, go to http://www.freep.com

Copyright (c) 2008, Detroit Free Press

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:F,