Evidence of recovery: Ford, GM spend on N.A. plants

Automotive News reports on GM's and Ford's new plant spending.

Ford Plant
Ford Escape Hybrids are assembled in Kansas City, Mo. The automaker plans to spend $400 million to update the factory to build a new unnamed vehicle when production of the Escape shifts to Louisville, Ky. Ford

Ford Motor and General Motors have unveiled plans to invest in their North American manufacturing plants, offering more evidence that the days of conserving cash to survive the recession are ending.

Ford will spend $400 million to build a new vehicle at its Kansas City, Mo., plant when production of the Ford Escape shifts to the automaker's Louisville, Ky., factory.

The money will pay for a body shop, tooling, and other upgrades. Ford expects to keep 3,750 jobs at the Missouri plant as a result of the spending.

Production of the Ford F-150 pickup will continue at the Kansas City plant on a separate line.

In December, Ford said it would spend $600 million on the Louisville plant to build the next-generation Escape, starting in late 2011.

The Kansas City plant is the fourth North American facility Ford is retooling to build new models. The new vehicle planned for the Missouri plant will be announced later.

Separately, General Motors is spending $540 million on an engine plant in central Mexico to produce two low-emission engines, with output targeted mainly at the Mexican market.

(Source: Automotive News)

 

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