In what could be devastating news for the St. Louis area economy, The Wall Street Journal reported today that Ford Motor Co., the nation’s second-largest automaker is likely to close its assembly plant in Hazelwood.
Plants in Atlanta and St. Paul, Minn., also face shut down.
The newspaper quoted two unidentified sources.
Ford Chairman and CEO Bill Ford has said he plans to announce U.S. plant closings and layoffs in January.
This summer’s gas prices led to a major decline in SUV purchases and the result could felt throughout the St. Louis region.
The report comes a day after Ford said sales of its Ford, Lincoln and Mercury brands fell 18 percent in November, and it said it would produce 2.5 percent fewer vehicles in North America in the first quarter than it did last year.
In January 2002, Ford announced plans to shutter the Hazelwood plant near St. Louis, but it had since received a temporary reprieve.
More than 700 people work at the Hazelwood facility.