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.
“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.