Ford reduced the working hours at two of its factories but the manufacturer avoided layoffs by moving employees to other locations, the company stated.
The automaker is moving about 500 employees at its Louisville assembly plant at its Kentucky truck plant, both located in Kentucky to boost its production of Lincoln Navigator and Ford Expedition, which are at currently high demanded and witnessing strong sales.
It is also moving its 500 jobs of Flat Rock’s assembly plant to the transmission plant in Livonia, which produces transmissions for various vehicles including large-format pickup F-150 and Ranger. Both factories are in Michigan. Ford produces the Mustang sports car in Flat Rock and Lincoln MKC and Ford Escape, two compact crossovers, at the Louisville Assembly plant.
Rising demand for expensive SUVs has helped car makers, particularly in the US, where there is a trend of decline in sales this year. Ford is strong in large trucks and SUVs. In October, Ford Expedition sales rose 36% over 2017, while Lincoln Navigator sales increased more than 80% over the same month of 2017. Meanwhile, sales of the MKC dropped by 8, 5%, Escape7%, the MKC 8.5%, and Mustang by 6%.
“Our collective bargaining agreement offers for the placement of members displaced by the reduction of shift and, after working with Ford, we believe that all employees involved the outcome will get a chance to work in nearby facilities,” said Rory Gamble, vice president of United Auto Workers Union.
General Motors is criticized this week after the announcement of the closure of five factories in Canada and the United States, reducing 14,000 jobs. President Donald Trump was angry with GM, tweeting Tuesday that he was disappointed with CEO of the company, Mary Barra owing to the shutdown of its factories in Maryland, Michigan, and Ohio.