Ford Motor Co. (NYSE: F) and the United Autoworkers Union have worked together to bring back nearly 2,000 union employees to the automotive manufacturer’s factories which would have otherwise been migrated to parts supply companies, according to a report from Zacks Investment Research.
According to the report, Ford claims to have already reinstated 1,340 employees in 24 of its plants around the country and plans to add 635 more by 2012 to meet its target of 1,975. The company said that it has revised its factory-level contracts in order to make its plants more efficient. In 2007, Ford and the UAW agreed to bring back 1,559 jobs to its U.S. plants, however, the most recent agreement boosted the company’s commitment by 25%.
Ford plans on using the employees to build gas-electric hybrid transmission components which are currently imported from Japan, as well as battery pack assemblies which are currently made in Mexico. Employees will also be used for steel forging and transmission gear machining which was previously done in Japan. Ford believes that by taking manufacturing these components in-house, they will meet better quality standards and be more reliable.
Ford recently obtained a loan guarantee valued at $250 million from the Export-Import Bank of the United States to finance its export sales. The Dearborn, MI-based automaker plans to use its U.S. facilities for the models which will be exported, a move that will help meet manufacturing capacity added by the call-back hires.
Shares of Ford Motor Co. (NYSE: F) traded down 1.32% on Monday hitting $11.99 by the end of the day.