mrbowler92 Posted August 19, 2015 Share Posted August 19, 2015 This may have been discussed in an earlier thread, but, what does Ford plan to do with this plant? I'm sure this is going to be one of the main topics for contract discussions. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 19, 2015 Share Posted August 19, 2015 Nobody knows yet. Keep an eye out when the new UAW contract comes, more will be revealed then. Otherwise wait for an official announcement on specifics Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted August 19, 2015 Share Posted August 19, 2015 I hate this gamesmanship. Everybody knows, going in, the deal's not going to change substantially. The UAW's going to push for wage increases. Ford's going to push for profit sharing, because that's not a fixed cost. The UAW's going to do its 'strike' saber rattling. Ford's going to do their.... "we may have to close a plant" tsk-tsking--even though they're running at dang near capacity. And what does it accomplish? Not a thing. MAP's going to get two shifts of product. Almost certainly C-sized, and my money's on the Transit Connect, the Escape, and the hybrid. 2 Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 19, 2015 Share Posted August 19, 2015 What incentive do they have to start building Escapes at MAP? I thought it was pretty well established that the additional volume wasn't necessarily worth the added cost. It would make more sense for MAP to get the MKC and free up Louisville for more Escape volume. Unless you are talking strictly a potential Escape hybrid. That would make more sense. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted August 19, 2015 Share Posted August 19, 2015 It wasn't worth adding a 3rd shift to MAP to build, say, 40k Escapes. But it might be worth retooling for, say, 60k Escapes (including 20k for export), 70k Transit Connects, 40k "New Hybrids" and, who knows? the Bronco thing? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 19, 2015 Share Posted August 19, 2015 (edited) I wonder if Explorer sales will keep growing, that could be a consideration for the future.... I see lseveral opportunities for Ford to increase production volume. Edited August 19, 2015 by jpd80 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted August 19, 2015 Share Posted August 19, 2015 It wasn't worth adding a 3rd shift to MAP to build, say, 40k Escapes. But it might be worth retooling for, say, 60k Escapes (including 20k for export), 70k Transit Connects, 40k "New Hybrids" and, who knows? the Bronco thing? Where are they getting exported to though? Would make more sense to build them in Mexico if they had to do that? Same with the TC..why not move it to Mexico with the Focus? Quote Link to comment Share on other sites More sharing options...
Biker16 Posted August 19, 2015 Share Posted August 19, 2015 Where are they getting exported to though? Would make more sense to build them in Mexico if they had to do that? Same with the TC..why not move it to Mexico with the Focus? Buy America Rules make sourcing the Transit connect from the US attractive. Quote Link to comment Share on other sites More sharing options...
SoonerLS Posted August 19, 2015 Share Posted August 19, 2015 Buy America Rules make sourcing the Transit connect from the US attractive. ...and there's a big US Postal Service contract coming up. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 19, 2015 Share Posted August 19, 2015 ...and there's a big US Postal Service contract coming up. has that been awarded yet? Quote Link to comment Share on other sites More sharing options...
Biker16 Posted August 19, 2015 Share Posted August 19, 2015 ...and there's a big US Postal Service contract coming up. In the Greater scheme of things the Postal contract is small Potatoes, there is a larger market for other government contracts, for up-fitted vehicles where FTA 5310 funds are used to purchase vehicles, along with general purpose needs of governments small and large for Cooperative purchasing Agreements that Require Buy america. The Advantage of US sourcing is the competition is all made in mexico, which can in some circumstances triggers a buy america exemption, or force the buyer into a Minivan like the Ram C/V which is made in Canada. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted August 19, 2015 Share Posted August 19, 2015 In the Greater scheme of things the Postal contract is small Potatoes......... This contract is actually rather large. From Automotive News, "It could be one of the largest fleet purchases ever. According to specifications released to potential bidders Jan. 20, the Postal Service would buy 180,000 vehicles at $25,000 to $35,000 apiece, valuing the contract at $4.5 billion to $6.3 billion." 1 Quote Link to comment Share on other sites More sharing options...
Footballfan Posted August 19, 2015 Share Posted August 19, 2015 In regards to building the Transit Connect or Hybrid or even the Ecosport at MAP, if Ford cannot make money/make enough money at MAP with the Focus to have to move it to Mexico, how can they make money with the same type of vehicles? I am also certain that the UAW will not settle for any product that would lead to less employment at MAP than they had with three shifts. My guess is that MAP gets shut down for 6 months and makes the next-gen Explorer and Variants. CAP gets shut down for about 6 months following the launch of the new Explorer to produce the next-gen Fusion. Hermilsilo will produce the Hybrid compact. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 19, 2015 Share Posted August 19, 2015 In regards to building the Transit Connect or Hybrid or even the Ecosport at MAP, if Ford cannot make money/make enough money at MAP with the Focus to have to move it to Mexico, how can they make money with the same type of vehicles? I am also certain that the UAW will not settle for any product that would lead to less employment at MAP than they had with three shifts. My guess is that MAP gets shut down for 6 months and makes the next-gen Explorer and Variants. CAP gets shut down for about 6 months following the launch of the new Explorer to produce the next-gen Fusion. Hermilsilo will produce the Hybrid compact. In a word, no. There is MUCH more margin in the Transit Connect (and a higher ATP to go with it) than there ever will be in the Focus. The days of MAP running on 3 shifts are gone. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted August 20, 2015 Share Posted August 20, 2015 In a word, no. There is MUCH more margin in the Transit Connect (and a higher ATP to go with it) than there ever will be in the Focus. The days of MAP running on 3 shifts are gone. Ford doesn't have the luxury of not running a plant on three shifts. They are capacity constrained, unless new assembly plants are built. One way or another, product will be sourced into it to cover three shifts of production. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 20, 2015 Share Posted August 20, 2015 Ford doesn't have the luxury of not running a plant on three shifts. They are capacity constrained, unless new assembly plants are built. One way or another, product will be sourced into it to cover three shifts of production. What's the excuse for FRAP then? Because it's seems like there might not be a 3rd shift coming here after all. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted August 20, 2015 Share Posted August 20, 2015 What's the excuse for FRAP then? Because it's seems like there might not be a 3rd shift coming here after all. Contract. Doom and gloom happens every four years (used to be three ). Give it a month or so and everything will become more more clear. 1 Quote Link to comment Share on other sites More sharing options...
Biker16 Posted August 20, 2015 Share Posted August 20, 2015 This contract is actually rather large. From Automotive News, "It could be one of the largest fleet purchases ever. According to specifications released to potential bidders Jan. 20, the Postal Service would buy 180,000 vehicles at $25,000 to $35,000 apiece, valuing the contract at $4.5 billion to $6.3 billion." I did know it was that large. Depending on the production is spread out, It is still less volume than perspective federal state or local government purchasing. Especially since the TC is so flexible and can fill so many niches. The USPS contract would be a nice bonus. Quote Link to comment Share on other sites More sharing options...
blazerdude20 Posted August 20, 2015 Share Posted August 20, 2015 I did know it was that large. Depending on the production is spread out, It is still less volume than perspective federal state or local government purchasing. Especially since the TC is so flexible and can fill so many niches. The USPS contract would be a nice bonus. I believe the USPS is looking for a lump build and delivery. Not sure why but that was the word at the beginning of the year. Quote Link to comment Share on other sites More sharing options...
SoonerLS Posted August 20, 2015 Share Posted August 20, 2015 I believe the USPS is looking for a lump build and delivery. Not sure why but that was the word at the beginning of the year. If I were to guess, I'd say it's because they have a lump of money to do the project, and there's no guarantee that there would be money next year to continue it. The only thing worse than being stuck with a fleet of dinosaurs is to be stuck with a mixed fleet of dinosaurs and new vehicles. That'd be a logistical nightmare. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted August 20, 2015 Share Posted August 20, 2015 That'd be a logistical nightmare. I expect nothing less out of a government operation Quote Link to comment Share on other sites More sharing options...
mrbowler92 Posted August 21, 2015 Author Share Posted August 21, 2015 How did we go from MAP to the USPS? Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 21, 2015 Share Posted August 21, 2015 How did we go from MAP to the USPS? Speculation is that Transit Connect might be produced at MAP, and the USPS is looking to replace their aging fleet of mail trucks, with Transit Connect being a possible replacement. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 21, 2015 Share Posted August 21, 2015 (edited) No matter what happens at MAP after 2018, Ford is in the box seat. Consolidating Focus production with Fiesta in Mexico improves volome in that plant and gives Ford the option of: using MAP to increase production by 30,000 a month or shut it and take the improved scales of economy.. If Ford closes MAP, then it would throw even more pressure on CAP, FRAP and OAP FRAP would have to take new Taurus production to free CAP for maximum Explorer volume. What to do with the other side of Oakville where Flex and MKT are currently produced, could that become an Escape overflow plant or maybe Transit Connect for Nth America and Asia Pacific markets? Edited August 21, 2015 by jpd80 Quote Link to comment Share on other sites More sharing options...
rmc523 Posted August 21, 2015 Share Posted August 21, 2015 No matter what happens at MAP after 2018, Ford is in the box seat. Consolidating Focus production with Fiesta in Mexico improves volome in that plant and gives Ford the option of: using MAP to increase production by 30,000 a month or shut it and take the improved scales of economy.. If Ford closes MAP, then it would throw even more pressure on CAP, FRAP and OAP FRAP would have to take new Taurus production to free CAP for maximum Explorer volume. What to do with the other side of Oakville where Flex and MKT are currently produced, could that become an Escape overflow plant or maybe Transit Connect for Nth America and Asia Pacific markets? I don't see them closing it. They're production constrained as it is. As for Oakville, I wouldn't be surprised to see Flex indirectly replaced by Galaxy, which could be produced there on CD4 with Edge. Quote Link to comment Share on other sites More sharing options...
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