Insourcing back at 'Big Three' automakers
Published: Feb. 15, 2008 at 4:55 PM
Ford Motor Co. will be the first of Detroit's Big Three to assembly some of its parts in house, starting with instrument panels, which Ford will make for the Taurus and the new Lincoln MKS sedans in the spring of 2008.
The industry has increasingly turned to China, Mexico and other countries for outsourcing contracts.
Now, "we are convinced that an insourcing trend is emerging," John Murphy, an industry analyst with Merrill Lynch told the Detroit Free Press.
Insourcing is now viable, as a new four-year contract with the United Auto Workers has dropped starting wages to $14 an hour, competitive with currently outsourced contracts both in the United States and abroad, the newspaper said.
Moreover, union contracts stipulate that Ford insource to provide 1,500 jobs, General Motors Corp. 3,000 jobs and Chrysler LLC 1,025 jobs.
Ford has even agreed to open its books to the union, so that, essentially, companies bidding for parts contracts at Ford will be bidding against the UAW, the report said.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
» Next in Business:
U.S.markets close week with slight decline
Latest Headlines
Most Popular