DEARBORN, Mich. -

Now all members of the Big 3 and the UAW have their negotiations settled.

Ford confirmed this morning a new national labor agreement has been ratified by UAW-represented employees in the U.S. The automaker believes the agreement covering approximately 41,000 employees improves its competitiveness in the U.S.

The OEM indicated it is adding 12,000 hourly jobs in its U.S. manufacturing facilities through the four-year term of the contract, including in-sourcing work from Mexico, China and Japan.

The company also intends to invest $16 billion in its U.S. product development and manufacturing operations — including $6.2 billion in plant-specific investments — by 2015.

“This agreement is proof that, by working together with our UAW partners and local communities, we can significantly create new jobs, invest in our plants and people, and make a very positive impact on the U.S. economy,” stated Mark Fields, Ford’s president of The Americas.

“Our agreement is fair to our employees, and it improves our competitiveness in the U.S,” Fields continued.

Today’s announcement culminates negotiations between the domestic manufacturers and the UAW that began in July.

General Motors struck a four-year agreement with the union late last month.

A two-to-one majority of UAW members voted to ratify a new collective bargaining agreement with GM; the vote was 65 percent in favor of the agreement among production workers and 63 percent in favor among skilled trades workers.

This marked the finalization of a tentative agreement between GM and the UAW made on Sept. 16.

The four-year contract — which is effective immediately and covers more than 48,000 active workers at GM — is expected to create 6,400 new jobs in the United States, providing jobs for UAW members who have been laid off over the last several years. On top of creating thousands of new jobs, the contract will work to bring jobs back to the U.S. and to UAW GM plants that had been moved to Mexico and other parts of the world.

Meanwhile after some tense moments, Chrysler and the union also brokered a deal that UAW members ratified last Wednesday.

The agreement between Chrysler and the union includes $4.5 billion to produce new and upgraded vehicles and components by 2015. Jobs, investment and product guarantees in the tentative agreement also include:

—Belvidere, Ill., new compact vehicle.
—Sterling Heights, Mich., new compact vehicle.
—Kokomo, Ind., new front wheel drive 9-speed – 946 TE transmission and new rear wheel drive 8-speed 845RE transmission.
—Toledo, Ohio, next generation steering columns, FRW and RWD torque converters.
—Trenton, Mich., reutilize portion of the Trenton North Engine Plant to produce an incremental volume (150,000 units) of 3.8L V-6.

“It’s a new day at Chrysler,” declared UAW president Bob King.

“In less than three years, Chrysler, through the dedication and hard work of its UAW-represented workers, has emerged from bankruptcy, repaid its federal loans six years early and is now helping drive the U.S. economy,” King continued. “Through this collective bargaining agreement, we are adding jobs and helping to rebuild America.”

New Ford Deal

Turning back to Ford’s agreement, the automaker pointed out the new investments and added jobs are designed to help the automaker better meet current and anticipated future demand for its vehicles.

Ford plans to add production capacity and new vehicles in several of its U.S. facilities, including four U.S. assembly facilities.

Officials explained Auto Alliance International in Flat Rock, Mich.; Michigan Assembly Plant in Wayne, Mich.; Chicago Assembly Plant; and Louisville Assembly Plant each will add a new production shift, resulting in significant volume increases for the fuel-efficient vehicles built there.

The added production comes on the heels of strong U.S. sales in September.

The automaker highlighted Ford Explorer sales were up 204 percent versus a year ago. The Ford Escape set a new sales record, up 41 percent versus September of last year and up 32 percent year to date. Ford Fusion sales are up 17 percent year to date, after setting monthly sales records for 11 of the last 12 months. The new Ford Focus is highly popular with consumers but has been constrained by availability.

The OEM thinks the added shift will allow Ford to continue to meet strong demand for the Focus and other new products at the Michigan Assembly Plant.

“Customers are taking notice and responding very positively to Ford’s lineup of fuel-efficient, high-quality and innovative products,” Fields said.

“Working with the UAW, we now will be better able to meet the growing demand,” he added.

The company computed the planned production growth at the four facilities will increase U.S. jobs by nearly 5,000 — 1,200 at Michigan Assembly Plant, 1,200 at Chicago Assembly Plant, 1,300 at Louisville Assembly Plant and 1,200 at AAI.

All are part of Ford’s plan to add 12,000 U.S. hourly jobs in the next four years.

Bringing New Blue Oval Products to Market

Officials went on to mention Ford’s new national labor agreement also brings new products to U.S. plants.

For example, Ford is moving production of the Ford F-650 and F-750 medium-duty trucks from Escobedo, Mexico, to its Ohio Assembly Plant in Avon Lake, Ohio, after the plant stops current production of the Ford E-Series vans.

The company also is bringing F53 motor home chassis and F59 commercial stripped chassis production in-house, investing $128 million in the Ohio facility.
The company insists the medium truck manufacturing shift will make Ford the only U.S. full-line manufacturer of Class 6 and 7 medium-duty vehicles. It also marks the end of a decade-old Blue Diamond Truck LLC joint venture between Ford and Navistar International, which currently manufactures Ford F-650 and F-750 trucks in Mexico for customers across North America.

“By moving our commercial vehicle production in-house, we will be able to streamline and strengthen the engineering and manufacturing of our next-generation medium-duty trucks,” Fields stressed.

Finally, the company noted production of Ford’s E-Series, currently built at Ohio Assembly Plant, will continue to be available in certain variations through most of the decade.

A new full-size van called the Transit — slated for production beginning in 2013 at Ford’s Kansas City Assembly Plant in Kansas City, Mo. — also will be introduced for Ford’s commercial van customers in North America.