Monday, December 05, 2005

Ford's secret deal

Don't Count Out Ford's Atlanta Plant yet

Ford announced plans last week to shut down its Atlanta plant, the plant that builds the Taurus & Sable. The Detroit Free Press article linked below discusses a possible secret deal between Ford and state and local government entities in Georgia, a deal that could keep the Atlanta plant open.

Besides the government incentives, as I mentioned in an earlier post, Ford has business incentives in keeping the Georgia plant open. First of all, even though the Taurus isn't the industry-wide top-seller that it used to be, it's still Ford's top selling sedan; selling more than the Focus. If Ford stops building the Taurus, it's doubtful that all 180,000 sales per year would go to Ford Motor Co. products. Many of the fleet buyers that buy the Taurus may be prohibited from buying the Taurus's replacement, the Fusion, because it is assembled in Mexico.

Secondly, a withdrawal from the Atlanta area may be taken as abandonment by many Georgian Ford customers. Why buy a Ford when Ford has abandoned us? Atlanta is a huge market. It may be worth keeping some manufacturing presence just to show commitment to the area.

Ford's secret deal

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