Thursday, April 13, 2006
Earlier today, Ford announced it is reorganizing its Canadian and South American operations. That announcement made no mention of its ongoing realignment of production in the U.S. states.At least we should be grateful that Ford didn't take up the corporate welfare offer from Governor Pawlenty:
But word quickly spread after meetings between Ford officials at Dearborn, Mich., and union officials that St. Paul and Norfolk, Va., plants are to be closed as part of a major realignment of production that seeks to reduce a total of 14 Ford plants by 2012.
The news is disappointing, but not unexpected given dramatically declining Ford Ranger sales. Minnesota proposed our own innovative ideas to keep the plant open. We were also willing to meet or exceed any offered incentive package. In the end, however, Ford indicated its decision was not about subsidies or bailouts, but about larger economic trends.According to state Sen. Richard Cohen, it doesn't sound like any amount of money or legislation would have been enough. Truth be told, the Ranger was a declining product, and Ford simply decided it was time to give up the line.
Categories: economics, Minnesota