Ford kicks up Fusion production, shares Mustang factory

Alisa Priddle | Detroit Free Press

Ford began addressing its shortage of Fusion mid-size sedans this week as it started production of the four-door sedans at the Flat Rock, Mich., factory where Ford manufactures Mustangs.

The automaker has added 1,400 workers at the Flat Rock assembly plant, meaning there now are 3,000 employees on two shifts making Fusions and Mustangs on the same line. The first market-ready Fusion was to be assembled Thursday after months of training and prototypes.

"Fusion has exceeded all of our expectations, with demand outstripping supply," said Joe Hinrichs, Ford president of the Americas.

Flat Rock's expanded production augments three shifts of Fusion production at Ford's plant in Hermosillo, Mex., where workers assemble the Lincoln MKZ. Because the Mexican plant has been unable to keep up with demand for the Fusion, Ford invested $555 million for a new body shop in Flat Rock that can weld bodies of the Fusion, a redesigned Mustang expected next year, and eventually the Ford Taurus and Lincoln MKS full-size sedans.

"We have completely transformed Flat Rock assembly plant to help prepare for Fusion production," plant manager Tim Young said. The paint shop also was upgraded.

Ford now can build as many as 350,000 Fusions annually, a 30% increase in capacity. The automaker sold 181,668 Fusions through July, including 25,069 hybrids, up 13% from a year ago.

But Fusion sales fell 12% in July largely because Ford couldn't make enough of them. Consumers are opting for high trim levels, which boosts Ford's profitability.Ford now can build as many as 350,000 Fusions annually, a 30% increase in capacity. The automaker sold 181,668 Fusions through July, including 25,069 hybrids, up 13% from a year ago. August sales are to be announced Sept. 4.

?The restyled Fusion with a choice of five engines is Ford's strongest midsize car since 1996 when the Taurus outsold Honda Accord and Toyota Camry, only to be overtaken the next year by both those Japanese models. Camry has led the segment for 15 years, followed by Honda Accord.

Camry was redesigned for the 2012 model year, and Toyota has sold 242,406 of them this year through July.

"We are thrilled to have added production of Fusion at Flat Rock — not just for our dedicated workforce here, but for the entire metro Detroit community and the associated jobs it will create," UAW Vice President Jimmy Settles said. "Together with the domestic automakers and through the collective bargaining process, we are able to bring jobs to the U.S. that were previously located offshore."

Ford has said it will create 12,000 hourly jobs in the U.S. by 2015 and with the 1,400 added at Flat Rock, the automaker has achieved 75% of that goal. This year Ford is hiring nearly 6,500 new hourly and salaried employees in the U.S. when new product launches have been relatively slow. Next year Ford will introduce new versions of two key vehicles — its highest-selling F-150 pickup truck, the company's bread and butter, and the Mustang, which will mark its 50th anniversary.