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Ford Closing Engine Plant As Part Of Union Agreement

Ford Closing Engine Plant As Part Of Union Agreement

Ford Motor Company and the United Auto Workers have reached a tentative agreement, sparing the automaker of a labor strike like cross-town rival General Motors endured for 40 days. As part of the agreement, Ford is planning to close one of its engine plants.

The tentative agreement between the two parties indicates Ford will close its Romeo Engine Assembly Plant in the metro Detroit area. Romeo currently builds certain V-8 engines for Ford, which are largely being phased out from the company’s product portfolio.

Ford and the union say the 600 or so employees at the plant will be offered the option to transfer to Ford’s Van Dyke Transmission plant, which is just 14 miles from the Romeo plant. They will also have the option to take severance packages and leave the company.

Other headlines from the tentative agreement include Ford committing to $6 billion in investment into its U.S. manufacturing over the next four years; details of said investment have not been offered.

UAW members are also slated to get a $9,000 ratification bonus as part of the contract, this is $2,000 less than the GM members received.

The UAW National Council will be voting on the new Ford contract today. Assuming the contract passes, it will then go to each UAW Local for full ratification in the plants, which span 18 states.


About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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