By Christina Rogers
Ford Motor Co.'s global manufacturing chief said Wednesday the
new Lincoln Continental luxury car will be built in Michigan,
marking a win for U.S. auto workers as contract talks with the
United Auto Workers union kick into gear this week.
John Fleming, speaking at an event in Dearborn, Mich., said the
new full-size model--a car that is to mark a new direction for the
Lincoln brand--will be made at the company's assembly plant in Flat
Rock, Mich., where it currently builds the Mustang sports car and
Fusion midsize sedan. The Flat Rock plant currently employs 3,100
workers.
The new Continental flagship, a top-of-the-line sedan that
revives one of the brand's most recognizable nameplates, goes on
sale next year (likely as part of the 2017 model year) and is aimed
at growing Lincoln's presence in China, where big, cushy sedans
with roomy back seats are in high demand.
Mr. Fleming revealed the location in response to a question from
the audience about where it will be built. He offered no other
specifics, other than to say that the vehicle has been well
received. Ford unveiled a prototype of the car's design this spring
in New York. "I think it will do very, very well," Mr. Fleming
said.
The Continental replaces the Lincoln MKS, which has been
manufactured in Chicago.
His remarks follow Ford's announcement last week that it would
move production of its Focus compact car and C-Max hybrid from
Michigan, likely to a factory outside the U.S.
Labor talks between Ford and the union begin next week and
securing U.S. jobs for UAW-represented workers will be a priority
for the union leaders because much of the new auto investment
lately has flowed to Mexico, where labor costs are cheaper. UAW
officials said they were told by the company that Focus production
would be moved from the U.S. in 2018.
Because small cars earn far lower margins than trucks and SUVs,
companies have struggled building them profitability in the U.S.
Earlier this year, Ford announced it was laying off 700 at the
Michigan plant. Low gas prices and rising demand for roomier trucks
and crossovers have sapped demand for small, fuel-efficient
vehicles. Ford already builds U.S.-sold Fiesta subcompacts in
Mexico.
Mr. Fleming said the decision to relocate the Focus and C-Max
wasn't tied to contract talks but rather preparations for the
next-generation models.
"It's normal business," he said. "It's just that normal business
sometimes intersects with other things that are happening."
"From our perspective, we needed to move forward because our
process is geared, where we have suppliers involved and we have
engineering teams doing work." He declined to say where the Focus
and C-Max would be built or what Ford might assemble next at the
Michigan factory. He said those moves will be discussed during
negotiations.
UAW President Dennis Williams, speaking to reporters Monday,
declined to comment specifically on the Focus and C-Max relocation,
saying he will wait until next week when the union officially kicks
off labor talks with the No. 2 U.S. car maker at a ritual
handshaking ceremony.
General Motors Co. Chief Executive Mary Barra said earlier this
week she sees no need to follow Ford's move because she is
confident the company can build its small cars in the U.S.
profitability. GM builds several subcompact and compact cars in the
Midwest.
Write to Christina Rogers at christina.rogers@wsj.com
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