Ford shifts gears, rehires workers - Ford Forums

RPO83 · 08-25-2002, 20:45

BIG companies sack staff to survive, right? Not always.

Giant US carmaker Ford Motor Co said on the weekend it will re-employ about 800 workers and begin making sport-utility vehicles at a US plant after getting $US36 million ($69.8 million) in incentives from Ohio's state government.

Ford will rehire employees fired in June after it shut down a minivan line at an Ohio plant, spokeswoman Della DiPietro said. Those workers will begin making Escape sport-utilities next year. The deal also keeps another 1200 people making Econoline vans at the factory for at least five years.

In exchange, Ford will invest $144 million to upgrade the plant.

Ford in May said it wanted to make as many as 45,000 Escapes in Ohio a year.

Ohio's incentive package includes a business development grant, $6.5 million for training and $28.5 million in tax breaks for the plant.

Ford employs more than 17,000 people in Ohio.

Escape sales fell 12 per cent to 81,613 this year to July, in part because of competition from Honda's CR-V and Hyundai's Santa Fe.