UAW Warns Ford May Cancel Planned Investment In Avon Lake Plant

AVON LAKE, OH — The Ford Motor Co. may back out of a pledge to invest $900 million in the Avon Lake-based Ohio Assembly Plant, according to United Auto Workers officials.

Ford initially announced plans to invest in Avon Lake in 2019. Company officials said at the time they would bring a $900 million new product line to the plant in 2023, creating as many as 1,500 jobs in the process. Between 2012 and 2019, Avon Lake returned $115,000 in collected income tax to Ford in an attempt to spur future development.

But UAW Vice President Gerald Kariem announced this week that Ford was considering taking its planned investment to Mexico. He described the situation as "rapidly evolving," according to News 5.

Ford sent a letter to employees this week saying circumstances surrounding the 2019 pledge have "changed" but they intend to invest in the plant. It's unclear if the company plans to bring a new product line to Avon Lake or not.

News of Ford's possible plans sent shockwaves through the Avon Lake community. "It is shocking and concerning news," said Avon Lake Economic Development Director Ted Esborn. "The initial news is tough for anyone in Avon Lake to hear."

City officials are in contact with both UAW and Ford officials, Esborn told Patch. Ford assured him there would be no reductions in the Ohio Assembly Plant workforce, though it said nothing of the 2023 investment moving to Mexico, he added.

As the city awaited further clarification on the Ohio Assembly Plant situation, municipal leaders reached out to elected officials from around the state. Esborn contacted Rep. Marcy Kaptur (D-Toledo) and Sens. Rob Portman (R) and Sherrod Brown (D), he said.

Brown responded in a Senate Finance Committee hearing Tuesday demanding that Ford honor its commitment to the Avon Lake plant.

“Clevelanders turned on the local news and saw headlines about yet another American corporation deciding to build things in Mexico instead of Ohio. Ford had made a 2019 commitment to invest $900 million in the Ohio Assembly Plant in Avon Lake, Ohio — an investment they promised would create more than 1,500 jobs. Ford announced instead that it has decided not to honor that promise but instead build its next generation vehicle in Mexico. The decision to turn its back on the community is just unacceptable,” Brown said during the hearing.

Kaptur issued her own statement on Tuesday night, saying: "“Ford should immediately clarify what it’s plans are, as reportedly the company has decided to forgo its negotiated, contractual agreements with its Northern Ohio workers. For Ford to back out of its commitment to workers in Ohio, and instead export American jobs to Mexico, would be devastating decision for Ohio families and the greater regional economy.”