CHICAGO | Ford plans to make the largest investment in the Calumet Region since the massive modernization project at the BP Whiting Refinery that wrapped up in 2013.
The Dearborn, Mich.-based automaker is looking at investing $900 million in the Chicago Assembly Plant in Hegewisch, where it will start making a new vehicle and hire 200 more employees. That's more than double the amount Ford spent to modernize the 91-year-old plant, the oldest continuously operated one in its system, in 2010.
"Ford's investment in Chicago under this agreement will create high-paying jobs and ensure the Torrence Avenue plant continues to grow for years to come," Chicago Mayor Rahm Emanuel said. "Ford knows that Chicago's workforce, transportation systems and quality of life are second to none, and this contract is a win for both Ford's workers and the South Side of Chicago."
The plant on Torrence Avenue had been bustling because of the popularity of the Explorer, which is America's best-selling mid-sized sport-utility vehicle. Employment has surged from 3,200 workers in 2011 to 4,400 today.
Ford would employ 4,600 workers after investing $900 million to support production of the Explorer, Police Interceptor, the Taurus and a new vehicle to be named later. The factory on the Calumet River also produces the Lincoln MKS, which is being phased out next year.
The investment is included in a four-year deal between Ford and the United Auto Workers union, which has been approved by UAW leadership. The new contract includes worker incentives that would immediately pump an estimated $54 million into the local economy.
"Working with our UAW partners, we have reached a tentative agreement for the next four years for our employees and our business," said John Fleming, Ford executive vice president, Global Manufacturing and Labor Affairs. "The agreement, if ratified, will help lead the Ford Motor Company, our employees and our communities into the future."
In 2010, Ford invested $400 million in renovations at the sprawling 2.8 million-square-foot plant so it could start making the Explorer, which is widely credited for its turnaround. Employment has since soared at both the Chicago Assembly Plant and the Chicago Stamping Plant in nearby Chicago Heights, which are both running around the clock to keep up with demand.
Ford plans to reveal more details about the new investment and the jobs at a later date.