There has been a wave of uncertainty in the US automotive industry lately. This is due to rising tariffs on imported steel and major automotive companies shutting down plants. Towards the end of November, General Motors Company (NYSE:GM) announced a ‘restructuring’ that would lay off thousands of workers in the US and Canada just before Christmas. Now, Ford Motor Company (NYSE:F) has come to the rescue!
Ford Motor Invests in US Plant and Workers
We're proud to announce a $1 billion investment in our #Chicago Assembly and Stamping plants, adding to the 23,000 jobs we've created or retained in the U.S. since 2011. #BuiltFordProud pic.twitter.com/KYYPLRXIGp
— Ford Motor Company (@Ford) February 7, 2019
The Dearborn, Michigan-based automotive company announced via its social media that it would be investing $1 billion into its Chicago and Stamping plants. This money will go towards the production of its newly redesigned Ford Explorer and its Lincoln Aviator sport utility vehicles. This new expansion and money come from the company making cuts overseas. In addition, Ford Motor made a shift to its line up by focusing more on SUVs, trucks, and crossover-utility vehicles. The company said Americans have fallen away from driving sedans and sports cars in recent years.
While GM is steadily handing out layoffs, Ford will be adding 500 jobs to its Chicago and Stamping plants. Both factories should have around 5,800 employees. The company will also spend around $40 million to upgrade its facilities for its employees with new cafeteria updates and LED lighting.
While Ford isn’t able to fully replace all the jobs that GM cut, it is a positive step in the right direction for the US automotive industry. However, European Ford Motor workers are facing strong layoffs, as the car manufacturer has had a tough time gaining footing in the European industry. I guess the money has to come from somewhere, right?
Ford Motor Company Stock Movement
According to Yahoo Finance, in pre-market hours F is currently trading at $8.28 a share, down -$0.03 (-0.36%). It closed the market at $8.31 a share, down -$0.41 (-4.70%) yesterday. It remains unknown if the stock will rebound at the bell this morning.
Featured Image: Instagram