Finally, Ford brings some jobs back to the Rust
Belt. “Made in America” is back. This week, a Ford plant in Flat Rock, Michigan
(about 25 miles south of the now bankrupt Detroit) began producing the
high-demand sedan in addition to its existing production of the popular and
iconic Ford sports car, the Mustang.
The plant hired another
1,400 workers in order to produce the new model of the Fusion, which was
revamped just this last year. This is the first time that the Ford Fusion has
been produced in the United States.
High
Demand
Until recently, the Ford
Fusion was largely being produced at a plant in Hermosillo, Mexico, located
about 250 miles south of Tucson, Arizona. But in the last year, demand for the
Fusion has gone up 13%, making it one of the hottest selling cars in the country
and in need of some more production, hence the expansion of the Flat Rock
plant. The popular car is currently being sold about 2 weeks after it is
produced in the plant, blowing away the industry average.
Glimmer
of Hope
This may be the first
sign of a revitalization of the Midwest as an auto manufacturing center, but it
will be quite some time before we know for sure. At any rate, the fact that
Ford is bringing some of its manufacturing jobs back to the United States is
encouraging on many levels. Firstly, it shows some level of economic
improvement, as citizens are buying more cars to the point that production
needs to be increased.
In addition, it means
that the auto giant Ford is doing better, as it is more willing to pay the
wages demanded by American automotive manufacturing unions instead of the
$2-3/hour wages currently provided in countries like Mexico. But this is not as
big of a difference as it once was. A 2007 agreement with the United Auto
Workers Union (UAW) made it legal for new auto workers to be paid at half the
rate of veterans in the same position, lowering wages for new employees to
about $15/ hour. And, probably not coincidentally, about 1,200 of the plant’s
1,400 workers are brand new to the business.
Economic
Upside
Some may be a bit upset
about this drastic cut in wages for new auto workers, but it definitely has its
upsides. Namely: jobs are coming back to the United States. This cut in wages,
though it doesn’t necessarily treat new workers to a handsome starting salary,
will help on several levels with economic stimulation, as more and more
Americans are earning wages and spending power. Other companies, such as
General Motors, have brought some manufacturing back to the United States as
well.
Moving production of the
Ford Fusion to this plant in Flat Rock, Michigan also helps Ford to move closer
to satisfying an agreement that the company made with the UAW to hire 12,000
hourly workers by 2015. Ford is now about ¾ of the way to reaching that goal
with the new hire of 1,200 plant workers.
Author Bio:
John Monts is a
professional blogger who is also currently a student at UC Davis, studying
Political Science and Economics. He is a part of the content creation team at www.Glass-Clinic.com.