St. Louis County Executive Charlie Dooley is not giving up hope, but knows the odds are long that Ford Motor Co., will grant its Hazelwood Assembly plant another reprieve.
Ford announced Monday it was shutting down the plant in the next two years. In 2004, it faced a similar fate and was granted a two-year lease on life.
Those who say that higher gasoline prices have no impact on the U.S. economy should visit north St. Louis County during the next two years.
The Ford Hazelwood Assembly Plant will be shut down in the next two years, primarily because Americans have fallen out of love with Sports Utility Vehicles (SUVs). Two SUVs were assembled at the St. Louis facility, and a dramatic slowdown in sales -mostly because of gas prices – has finally spelled doom for 1,445 workers in this region.
Ken Dearing, president of United Auto Workers Local 325, which represents workers in Hazelwood said,
“Today’s announcement is very disheartening for the 1,900 members in UAW Local 325. In less than two years, the Hazelwood plant has gone from the near bottom on issues of quality and cost control to a top five position within Ford.”
Gov. Matt Blunt and St. Louis County Executive Charlie Dooley said in a joint statement, “We are committed to working with Ford to reverse this decision and secure a long-term future for the Hazelwood workers.”
The national UAW expressed disappointment with Ford’s announcement, saying the automaker needs to focus on offering consumers appealing products instead of shrinking itself.
“Certainly, today’s announcement will only make the 2007 negotiations all the more difficult and all the more important,” UAW President Ron Gettelfinger said in a press release.
Hazelwood Mayor T.R. Carr said the city estimates that the Ford plant accounts for 7 percent of this city’s $1.45 million budget. City leaders will now discuss cost-cutting measures and a possible tax increase.
“We will be making painful sacrifices to protect Ford’s heritage and secure our future,” said Bill Ford, Ford Motor chairman and CEO. “Going forward, we will be able to deliver more innovative products, better returns for our shareholders and stability in the communities where we operate.”
Ford North American President Mark Fields said he company will focus on slowing losses in the short term, stabilizing market share; and returning North American operations to profitability by 2008.
In all, Ford will close 14 plants and lay off up to 30,000 workers.