Ford Motors is set to invest $1 billion in its Chicago-based plants and will open 500 jobs as the company expands. It was mentioned that the funds will also be used to manufacture three SUVs that it will introduce to the market this summer.
According to CNBC, Ford will put the money in two facilities specified as the assembly and stamping plants in Chicago. The announcement was jointly made by Chicago Mayor Rahm Emanuel and Ford's president of global operations, Joe Hinrichs, on Thursday, Feb. 7, during the 2019 Chicago Auto Show.
"Today, we are furthering our commitment to America with this billion dollars manufacturing investment in Chicago and 500 more good-paying jobs," Reuters quoted Joe Hinrichs as saying. "We reinvented the Explorer from the ground up, and this investment will further strengthen Ford's SUV market leadership."
It was stated that the new Ford investment directed to the said facilities in Chicago is also a fulfillment to the company's pledge that was indicated in its contract with the United Auto Workers and signed in 2015. It is likely that the automaker will create another agreement with the union.
"As Chicago continues to strengthen our diverse economy, Ford's commitment to add 500 jobs and infuse nearly a billion dollars into their Southeast Side assembly plant is a vote of confidence in our people and our future," Chicago Mayor Rahm Emanuel stated.
As said before, the investments in the plants and the hiring of 500 workers will make way for Ford to manufacture units of newly designed Ford Explorer, Explorer Hybrid, Lincoln Aviator and the Police Interceptor. With this plan, the company will get rid of their sedans that did not turn out to be profitable in the U.S.
Ford observed that more and more Americans prefer SUVs and trucks so it is betting on these vehicles to increase the firm's profits. It was revealed that it is not just Ford Motors but other automakers are also cutting back on producing the traditional cars in favor of the bigger sports utility vehicles and trucks.
Furthermore, the $1 billion dollar fund will also be used to upgrade the mentioned plants in order to create a more efficient workplace. Ford is planning to modernize and add the latest technologies for a better turnout.
One example of the items that will be installed in the facilities is a cutting-edge robot fitted with a camera. This will work together with other machines to simplify and hasten the whole manufacturing process. Finally, it was reported that 40 million will go for the improvement of the plants' canteen, resting areas, and lighting.
