Ford lays off 900 at Mustang plant

Ford is laying off 900 at a Mustang plant in Michigan. Photo / Supplied

DETROIT - Ford plans to cut 900 workers at the Michigan plant that makes the Mustang, after slow sales last year due to the tough economy and competition from the new Chevrolet Camaro.

Ford will reduce shifts from two to one in July at the AutoAlliance International plant in Flat Rock, Michigan. The plant, which is jointly owned with Mazda, also makes the Mazda6 mid-size sedan.

The plant employs nearly 2,300 people. Most of the layoffs will be hourly manufacturing workers, but some salaried staff also will be cut, Ford spokeswoman Marcey Evans said.

Evans said there was significant down time at the plant last year and Ford can get the volume it needs from one shift. Mustang sales fell 27 per cent last year, in part because of competition from the Camaro, which went on sale in the spring and came within 5,000 cars of outselling the Mustang.

The Camaro hasn't outsold the Mustang since 1985. Mazda6 sales were down 34 per cent.

Evans says a majority of the workers will be offered positions at other plants. Ford said last month it will hire 1,200 workers at its Chicago Assembly Plant to build the new Ford Explorer.

Explorer production will start at the end of this year. Ford also recently announced a plan to create 1,000 jobs in Michigan to make electric car batteries.

Evans said the company also needs workers at the Michigan Assembly Plant in Wayne, Michigan, which is scheduled to begin producing the new Ford Focus later this year.

Ford currently has around 600 workers on indefinite layoff in the US Those workers and the ones to be laid off at Flat Rock will have the first opportunity to take jobs at facilities that are hiring.

The company has been trying to thin the ranks of hourly workers, most recently offering buyout packages to all 41,000 US hourly workers in December. Around 1,000 workers took similar buyout offers last year.

- AP