Ford to reopen Windsor engine plant

Bryce G. Hoffman / The Detroit News

Ford Motor Co. announced Monday that it will reopen its engine plant in Windsor after the provincial government of Ontario agreed to give the automaker $17 million.

Ford closed the Essex Engine Plant in November as part of its North American restructuring — one of 16 factories it planned to close by 2012. That cost about 650 workers their jobs. Now, about 300 jobs have been saved.

Ford plans to invest $170 million in the facility. It will also receive tax abatements and other incentives from the municipal government in Windsor.

"To be truly competitive at a world-class level, we have to work together. There have to be partnerships between business, labor and government. That’s the only way to build a future and to attract new investment," said Joe Hinrichs, Ford’s global manufacturing chief, at a ceremony announcing the deal at the Essex plant Monday. "It’s that spirit of collaboration, that willingness to do things a bit differently, to innovate that has brought us to today’s announcement."

Ford would not say when the factory will reopen, but Canadian Auto Workers Union President Buzz Hargrove said the 300 workers could be back on the job by next year.

"We’ve had nothing but bad news in Windsor from Ford, General Motors and Chrysler," Hargrove told The Detroit News, adding that 1,000 Ford CAW members are laid-off in Windsor, with another 400 expected to be idled by year’s end. "This is an incredibly important first step. We’re happy for any new investment at this point."

Ford stressed that the union’s cooperation was critical to the decision to reopen the plant.

Hargrove said the local that represents Ford workers in Windsor recently approved a new competitive operating agreement similar to those that have been approved by United Auto Workers union members in the United States. The agreements provide for more flexible work rules, but vary from plant to plant.

He said the new work rules were ratified by more than 90 percent of the members.

While Ford would not say what engine it plans to manufacturer in Windsor, it is likely to be part of the automaker’s effort to roll out a new technology called EcoBoost.

The new powertrains combine direct-injection technology with turbo-charging to create more power and better fuel economy.

"We hope that today is just the beginning," Hinrichs said. "Ford continues to work with both the provincial and federal governments to gain support for further investment at Essex Engine, which would broaden the scope of the project and significantly increase the number of jobs at the plant."