Ford Eyes Profit-Sharing if Earnings Remain Strong

If Ford Motor Co. continues to post strong earnings during the remainder of 2010, a return to profit-sharing for United Auto Workers union members may be in the works.

Ford made $2.6 billion in the second quarter, and through July its light-vehicle sales were up 22.9%.

“As long as we continue making profits, everybody will benefit,” Mark Fields, Ford executive vice president and president-Americas, tells reporters when asked if the UAW profit-sharing plan will be revived.

In his speech at MBS, Fields says Ford is on track to bring about 1,975 jobs — many from outside the U.S. — back to Ford workers between 2008 and 2012, or 25% more than it committed to in its 2007 UAW contract.

So far, 1,340 jobs formerly held by suppliers have been shifted to 24 Ford U.S. facilities, and another 635 will revert to nine Ford plants within the next few years, he says. Among them: Battery manufacturing technology from Mexico to Rawsonville, MI, and front-drive transaxle manufacturing from Japan to Sterling Heights, MI.

Ford also will shift some work to its Sharonville, OH, transmission plant; Chicago stamping operation; Wayne, MI, assembly plant and a second Sterling Heights components facility.

Fields makes a case for a U.S. manufacturing renaissance, calling for greater collaboration between OEMs, unions, suppliers, government and others.

“No economy anywhere in the world since the industrial revolution has been strong without a strong manufacturing base,” he says.

Underscoring the world vehicle population will double to 2 billion over the next 20 years while demand for fuel will rise 45%, Fields says U.S. auto makers can help the nation retain a strong manufacturing base by meeting “the three critical issues shaping the globe: the economy, energy and the environment.