By Mike Ramsey
Ford Motor Co. is investing $168 million in retooling a
Cleveland-area plant to build its largest trucks, the F-650 and
F-750, in place of the E-series vans built there today.
Ford is phasing out the E-series van as it brings on the Transit
van, a lighter-weight, European-style cargo van that gets better
fuel economy and is sold around the world. The Ohio plant must
install new equipment to handle the large trucks, which are the
basis of firetrucks, dump trucks and other heavy-duty applications.
Ford builds the cab and the chassis, and the rest of the truck is
built by upfitters for their specific application.
"Shifting production of the 2016 Ford F-650 and F-750
medium-duty trucks to Ohio Assembly Plant helps secure a solid
future for the dedicated workers at this facility," said Joe
Hinrichs, Ford president of North and South America, in a
statement.
The new trucks won't be available until early 2015, the company
said. The Transit van will be built in Missouri. Ford, earlier this
week, announced that its 2015 F-250, 350 and 450 trucks will get
improved towing and fuel efficiency with an improved diesel engine.
In January, Ford announced it was expanding its F-250-550
production in Louisville, Ky., by 15%, or by 55,000 vehicles, with
an $80 million investment.
Ford sells around 250,000 heavy duty trucks a year, from
F-250-750, and about half a million F-150s. Ford reports sales of
its F-series together in a grouping, even though the largest trucks
share few components with the light-duty F-150. These trucks are
among Ford's most important products, generating wide profit
margins.
The production shift from Mexico is part of the collective
bargaining agreement Ford and the United Auto Workers union
negotiated in 2011.
Write to Mike Ramsey at michael.ramsey@wsj.com
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