By Christina Rogers
Ford Motor Co. has added 400 new factory workers to its
ranks--this time in Canada.
The Dearborn, Mich., auto maker says it has brought the workers
on board to supplement the 1,000 new employees hired last year at
its Oakville, Canada, plant to build a new Edge crossover going on
sale later this spring. The factory, which employs 4,500 workers in
all, has also received a $700 million investment.
The next-generation Edge will be sold in more than 100
countries, including Western Europe for the first time. The
additional hiring comes as lower gas prices have spurred demand for
sport-utility vehicles and pickup trucks. The Oakville assembly
plant also builds the Lincoln MKX and MKT crossovers.
The move is a big win for Canada at a time when it has struggled
to secure new investment from auto makers, even as surging new-car
demand has prompted them to spend heavily in factory expansions.
Much of that money is now flowing to the U.S. South and Mexico,
where labor rates are cheaper.
General Motors Co. recently said it would invest about $400
million in its Ingersoll, Ontario, assembly plant to build the next
generation Equinox sport-utility vehicle. But Canada is poised to
lose another GM assembly plant in 2016 when the auto maker
consolidates its operations in Oshawa.
Fiat Chrysler Automobiles NV is also spending about $2 billion
for a 14-week overhaul of its plant in Windsor, Ontario, to
manufacturer its next-generation minivan. Canada won the work last
year but not without a struggle. Fiat Chrysler Chief Executive
Sergio Marchionne, in pressuring the Canadian and Ontario
governments on a subsidy package last year, made clear the company
had other options for building the new minivan outside of
Canada.
With U.S. auto sales booming, auto makers have been staffing up
in North America, hiring thousands of factory workers to replenish
a workforce decimated during the recession.
Earlier this month, Ford said it would hire another 1,500 hourly
workers in the first quarter in response to higher demand for
pickup trucks. The move bumped hundreds of existing workers earning
an entry-level wage to a higher, more senior pay rate.
Securing new jobs and investment in the U.S. will also be a
major focal point of labor talks this year between the United Auto
Workers union and the U.S. car makers. Ford's job announcements
since the 2011 UAW contract have now topped 15,000 in the U.S.,
3,000 more than originally promised. Ford also has invested more
than $6.2 billion in plants and equipment.
Write to Christina Rogers at christina.rogers@wsj.com
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