Lorain/Elyria, OH
Poor Econoline sales leading to Avon Lake layoffs
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AVON LAKE — About 180 workers at Ford Motor Co.’s Ohio Assembly Plant will be laid off indefinitely starting Aug. 10.
Ford spokeswoman Marcey Evans said layoff notices already have been sent to the affected workers. Evans said the company is slowing production of the Econoline vans built at the plant, where approximately 2,000 union workers are employed.
Ford Sales Analysis Manager George Pipas said the Econoline and Club Wagon sales were down 37 percent in the first half of the year compared with 2008. This year, Ford has sold 46,888 of the vehicles compared with 74,575 last year.
But Pipas said that’s close to the 35 percent sales slump that the entire auto industry has been experiencing in the current recession.
Ford only produces the vehicles it believes can be sold.
“We’re going to align our production with consumer demand,” Pipas said.
Pipas said the recession could be nearing its lowest point and economic recovery is a real possibility in the coming months. That, he said, could mean an increase in sales followed by an increase in production.
“Among Ford economists, there is some belief that in the second half (of the year) we’ll start to see some modest economic recovery,” he said.
Avon Lake Mayor Karl “K.C.” Zuber said the latest round of layoffs at Ohio Assembly isn’t unexpected.
“It’s part of the economic downturn,” he said.
Avon Lake relies heavily on incomes taxes collected from Ford workers to fund its city budget, and Zuber said the auto industry’s woes have led to much less money being collected.
In 2006, he said, Ford workers contributed about $3.3 million to the city’s coffers, while this year the city expects to collect about $1.7 million from Ford employees because of previous layoffs at the plant.
But Zuber said the city has been careful to keep some of the money it has collected in the past in case of a sudden drop in revenue from Ford.
“We have money in the bank to do what we have to do and stave off layoffs,” he said.
The layoffs at Ford come nearly five months after members of United Autoworkers Local 2000, which represents workers at the plant, voted overwhelmingly to support concessions to help Ford stay solvent.
Ford has rejected federal bailout money that domestic competitors General Motors and Chrysler took in their efforts to avoid bankruptcy, which both ultimately ended up entering.
The union vote authorizing concessions also called for Ford to bring production of a new vehicle to Ohio Assembly.
It has been widely speculated that that vehicle will be the Transit van now built in Europe, but union and city officials have said they haven’t been told what the vehicle will be.
Evans declined to discuss the issue Friday.
Zuber said he has talked with state and company officials about possible incentive deals to help facilitate the new product line, but nothing has been officially offered.
But he also said that Ford may wait until after the economy has improved before announcing its decision and moving forward.
UAW officials did not return calls seeking comment Friday.
Contact Brad Dicken at 329-7147 or bdicken@chroniclet.com.
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“In 2006, he said, Ford workers contributed about $3.3 million to the city’s coffers, while this year the city expects to collect about $1.7 million from Ford employees because of previous layoffs at the plant.”
Like them or hate them, the workers at Ohio Assembly provide a huge tax base for Avon Lake and surrounding cities. As citizens of Lorain County we all need to be concerned when we see this kind of news. What the workers there don’t pay in taxes will eventually become our burden to pay.
Given this, wouldn’t it be a good idea for Lorain County citizens to buy Ford vehicles instead of Toyotas, Hondas, Kias and other foreign cars? I myself bought a new Fusion last year and I get just as good gas mileage outta that than I would from one of those. It’s about time we support the American Auto Industry because it covers our own backs in the end.
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Buying a Ford vehicle doesn’t help our local Ford plant, unless you’re in the market for a very large van.
Further, your Fusion may get as good of mileage as a Toyota or Honda, but will it last a long time like Toyota’s and Honda’s do? It’s so new a vehicle, that you just don’t know yet.
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I guess when you want to support me I’ll buy whatever you want. In the meantime I’ll spend my hard earned money however I want. From experience I don’t trust Ford’s quality. Even now I know of someone who has a small 2003 LIncoln SUV. It has a little over 50,000 miles on it. She had to pay $5,000 to get it fixed and now the Service Engine Soon light is still on… Will she or her husband buy another Ford? Nope.
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So if a Toyota or Honda plant is in your area adding to the tax base would you buy from them? Honda’s in Ohio, I wonder how much they are providing to the tax base.
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“Lorain County citizens to buy Ford vehicles instead of Toyotas, Hondas, Kias and other foreign cars?”
heres the thing. there is no such thing as a 100% usa car or a 100% foriegn car anymore. all cars have parts and things done in and outside of the usa. ohio has foriegn car plants that employ ohio workers; one isnt any more or less bad than the other.
these days poeple have less money to use for cars and have to go with the best deal for the money. when the american car makers decide to be more competative … i;m sure there sales will pick up.
i read somewhere that there are only about 10% of us drivers that dont already own cars anyway. maybe the big 3 should think about how to expand into markets that have more demand; like europ and china where only 50% or so drivers have cars.
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