Ford Motor Co. will add 1,000 jobs, invest nearly $100M in its Kansas City auto plant
Ford Motor Co. says strong demand pushed the auto giant to expand production capacity at its Kansas City Assembly Plant.
The Detroit-based automaker on Thursday announced plans to spend nearly $100 million and add more than 1,000 employees to its Claycomo factory, already the largest manufacturing site in the region.
In Kansas City, Ford builds the popular F-150 pickup and the Transit van. Earlier this year, Ford employees began shipping the new E-Transit van, the electric version of Ford’s Transit cargo van.
The company will add a third shift to increase production of Transit and E-Transit vans. The plant already operates three shifts on its F-150 lines.
“Demand is really strong for both our gas very popular Transit vehicle and our new E-Transit,”said John Savona, Ford’s vice president of manufacturing and labor affairs in the Americas. “What we announced today is a direct result of the demand we’re seeing for both products.”
Across Midwest plants, Ford said it will add some 6,200 jobs and convert nearly 3,000 temporary workers to full-time status as it adds an all-new Mustang coupe and Ranger pickup models.
UAW Local 249, which represents local Ford workers, said on Facebook that more than 500 temporary employees will be eligible for full-time status beginning June 13.
“This announcement speaks to the hard work and dedication of the members of UAW Local 249 as we continue to produce the best built, best selling Ford F-150 pickup and Transit Van,” the local wrote.
Ford currently employs about 7,000 workers at its Kansas City plant, and makes more vehicles here than at any other Ford factory on the continent.
“Today’s announcement is great news for our state. For more than 70 years, hardworking Missourians have assembled iconic Ford vehicles,” Missouri Gov. Michael Parson said in a news release. “Now, these 1,100 new hourly jobs at the Kansas City Assembly Plant will increase production of the Transit and E-Transit commercial vans, driving Missouri’s economy forward.”
Ford’s announcement comes a year ahead of union negotiations with the United Auto Workers. The company said it and the union broke with convention by not waiting until formal contract negotiations to announce new vehicles, plant upgrades and workplace improvements. In addition to converting temporary employees, Ford also announced it would make healthcare benefits available to all hourly workers on day one of employment.
“This announcement is a testament to UAW members who contribute their skill, experience and knowledge to the success of Ford Motor Company,” UAW President Ray Curry said in a news release. “We are always advocating to employers and legislators that union jobs are worth the investment. Ford stepped up to the plate by adding these jobs and converting 3,000 UAW members to permanent, full-time status with benefits.”
Ford said employee enhancements will vary by plant. But the company agreed to provide access to healthy food options, enhanced lighting and security in plant parking lots and electric vehicle charging stations.
“We’re not waiting for a formal negotiation to do what we know we want to do and we know what’s right for our employees,” Savona told The Star. “We have a very strong and longstanding relationship with the UAW. We’re a year and a half away from formal negotiations, but we have work to do now and we want to demonstrate to our employees now that we’re committed to those employees that worked through the entire pandemic and kept Ford Motor Co. going and profitable.
In April, Ford executives reported “mixed” financial results as it recorded a net loss of $3.1 billion, primarily because the decreasing value of its investment in electric startup Rivian. Ford officials cited ongoing supply chain challenges, but also noted overwhelming demand for their products.
The auto giant made nearly $18 billion in profits in 2021, outpacing rival General Motors for the second year in a row.
Like nearly every other employer, Ford has faced challenges hiring new employees, Savona said. But he said the company is better positioned to win over prospective workers.
Competitive pay and benefits, paired with the company’s mix of iconic and new-to-market models has positioned Ford well in the consumer and labor markets, Savona said.
“We’re certainly not immune to the challenge in the labor market but we think we have a very compelling story to tell,” he said. “We believe we have a different story to tell.”
This story was originally published June 2, 2022 at 8:50 AM.
