By Mike Ramsey
Ford Motor Co. won't invest in putting new, smaller engines in
plants in Windsor, Ontario, and instead will put the investment in
Mexico, according to Unifor, the union that represents auto workers
in Canada.
Ford and government officials had been discussing plans to build
a plant in Windsor that could produce 1.5-liter and 1.6-liter,
4-cylinder engines. Those engines are commonly used in the Ford
Fusion sedan and Escape sport-utility vehicle, which account
together for more than a half-million vehicle sales in North
America a year.
"We are disappointed," said Jerry Dias, the president of Unifor,
in a statement. "The auto industries that are flourishing around
the world are ones where there is a deep commitment from government
and an understanding of the importance and wisdom of
investment--which always pays dividends."
The union said in its statement that it would hold an
informational meeting Sunday to tell the union workers in Windsor,
which is located across the Detroit River, why the investment would
go to Mexico.
Ford declined to comment on the decision and wouldn't confirm
its intention to add engine production in North America. Those
engines today are built in the U.K. and Romania.
Ford has two engine plants in Windsor, both make V8 engines,
which are going out of favor because Ford has invested in
turbocharged V6 engines that get better fuel economy and produce
similar or better power.
Canada has struggled over the past several years to maintain its
auto industry as the Canadian dollar strengthened and the United
Auto Workers union has shed retiree health-care costs that made
U.S. labor less competitive with Canada.
Jake Enwright, a spokesman for Canadian Industry Minister James
Moore, said Ford recently approached the government with an
"unprecedented funding request," without detailing the monetary
figure.
"The federal government, after weeks of deliberations,
determined the terms laid out in Ford's proposal were not in the
best interest of Canadian taxpayers," Mr. Enwright said in a phone
interview.
He added the federal government's support for the auto industry
is focused on projects that secure high-value jobs and deliver
long-term benefits for the Canadian economy. He said the terms laid
out by Ford didn't meet those benchmarks.
Earlier this year, Fiat Chrysler Automobiles NV withdrew a
request for funding to support investments in Windsor. CEO Sergio
Marchionne said the company would move ahead with investments
without the government support, but also without the restrictions
that the government had planned to put on the company.
Write to Mike Ramsey at michael.ramsey@wsj.com
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