The Dearborn automaker said it was reviewing "several possible options" for production of the slow-selling Focus compact and C-Max hybrids, which would end in Wayne in 2018. But in a bulletin handed out to UAW members at the plant, Local 900 Chairman Bill Johnson said production of the Focus would move "to a location outside of the United States," most likely Mexico.
The move comes days before Ford, and its crosstown rivals, are set to begin national contract talks with the UAW. A key issue for Ford, as well as General Motors Co., will be closing their all-in labor cost gap, executives say, and one of the leverage points in bargaining and contract ratification is expected to be the real threat of moving some production to Mexico.
Ford and GM both are investing heavily in their Mexican operations, partly to exert pressure on the UAW to hold the line on labor costs and partly to take advantage of lower wages and more favorable trade agreements. In April, Ford said it would invest $2.5 billion in Mexico for two engine and transmission plants, creating 3,800 jobs.