As President Trump rages over General Motors’ decision to shutter several North American plants and lay off thousands of workers, Ford is shifting production in its U.S. plants to meet a growing demand for full-size sport utility vehicles and trucks.
Roughly 500 jobs will be moved from the Louisville Assembly Plant to the Kentucky Truck Plant to “increase Ford Expedition and Lincoln Navigator production by 20 percent,” a spokesperson said in an emailed statement. The Dearborn, Mich.-based company said sales of its luxury Navigator SUV are up 80 percent, while sales of the Expedition have climbed 36 percent.
Ford is also moving 500 jobs from its Flat Rock Assembly Plant in Michigan to its Livonia Transmission Plant, which supports the Ford F-150 and Ranger pickups. Another 150 individuals at the Flat Rock facility will be placed elsewhere.
“All full-time hourly employees affected will be offered jobs at another Ford plant,” the spokesperson said.
The moves come as the automotive industry at large grapples with rising costs due to President Trump’s tariffs on steel and aluminum imports, as well as on $250 billion in Chinese shipments.
Ford is pursuing an $11 billion restructuring and announced earlier this year that it would lay off workers after profits fell nearly 50 percent in the three months through June. The company has provided few details of its plan, but said it will move nearly 90 percent of its North American production to SUVs, truck, and commercial vehicles by the end of 2020.
Like GM, Ford is investing heavily in autonomous and electric vehicles. The company plans to invest $4 billion in self-driving cars over the next five years, as well as $11 billion in emissions-free autos from 2015 to 2022.
Ford rose 1.4 percent to $9.41 in New York trading.
