Local officials disappointed Ford holds firm on decision to close St. Thomas plant

January 07, 2010

DEARBORN – Local representatives from all three levels of government met with high ranking officials of the Ford Motor Company at their headquarters in Michigan yesterday and heard the confirmation they hoped not to hear: that Ford will close the St. Thomas assembly plant in mid-2011.

Elgin-Middlesex-London MP Joe Preston, MPP Steve Peters and Township of Southwold Mayor Jim McIntyre travelled across the Canadian border to meet with Ford officials to hear the automaker’s rationale regarding closing the St. Thomas plant, what plans if any Ford has to help redevelop the plant and to give one more pitch to keep the plant open. The Ford officials included James Tetreault, Ford Motor Company, Vice-President of North America Manufacturing; Jay Gardner, Ford Land, Vice-President Land Development; Roger Gaudette, Ford Land, Director of Asset Management; Caroline Hughes, Ford Motor Company, Director of Government Relations Canada; James Rowland, Ford Motor Company, Manager of Government Relations Canada; and Michael Sheridan, Ford Motor Company, Director of Government Relations Washington. The local elected officials were joined at the meeting by the Chief of Staff of the Honourable Sandra Pupatello, Minister of Economic Development and Trade.

Ford’s reasons for both closing the St. Thomas plant and no longer making its products, the Crown Victoria, Grand Marquis and Lincoln Town Car (all cars that use the same platform), include:

The need to consolidate the North American and European markets to gain better competitiveness and efficiencies;
Refocusing on what non-truck product lines the company believes it needs to be competitive in (compacts, subcompacts, crossovers and mid-size sedans);
A consolidation of all Ontario plants so that all remaining facilities run three shifts a day to prevent future idling of plants, a strategy that has already been witnessed with Ford facilities in France and the southern U.S.;
Issues with government fuel efficiency regulations and the lack of a market and profit margin for ‘E’ automobiles despite looking at other opportunities.

Local elected officials have presented many arguments to Ford officials to reconsider their decision but to no avail – Ford is simply committed to its plan to close the St. Thomas Assembly Plant and moving in a different direction that will result in the permanent layoff of 1,500 jobs.

“No one can say we didn’t try our best to save those jobs,” Preston said after the meeting. “We all gave it our best shot, from all levels of government and from every viewpoint we could think of. While there were some positive aspects to what Ford told us they are willing to do once they close the plant, I am still greatly saddened by what appears to be their final decision.”

“I am gravely disappointed with the fact Ford will close this plant and therefore continue the downward spiral of our local manufacturing sector and the resulting huge drop in economic spinoffs to our local economy,” Peters said. “And there are sectors such as police services and the taxi and limousine industry that have said they want the products that the St. Thomas plant makes and nothing else.”

“The Ford plant closing in 2011 is a huge blow to the Township of Southwold, the County of Elgin and the entire region,” McIntyre said. “And not only to the local industrial tax base that does a lot to help upper and lower tier municipalities balance their bottom lines for ratepayers, but to the economic health of the communities we represent.”

Preston, Peters and McIntyre agree that the workers at the St. Thomas Ford Assembly Plant have shown time and time again their dedication to making the highest quality automotive products while giving generously to their community through charitable donations.

Ford officials said they would not simply abandon the St. Thomas plant and are willing to assist in the marketing of the site to potential buyers. Ford has also helped redevelop a closed plant in Wixom, Michigan that will be transformed into the largest renewable energy park in the U.S. In September, Ford finalized a deal to sell the Wixom facility to two companies, one specializing in wind power, the other in solar power, a move which helped secure loans and other financial assistance from different levels of U.S. governments. The Wixom plant employed about 1,000 people when it closed in May 2007 and at its height employed more than 5,000 workers. The plant made several different Ford vehicles over its 50 year history including the Lincoln Continental and other large Lincoln models as well as the Ford Thunderbird.