Ford To Shut Down Engine Plant In Romeo, Michigan, Following UAW Deal

Ford is going to shut down an engine factory in Romeo, Michigan as part of an agreement with the United Auto Workers union for a new 4-year contract.

Quoting a source, Reuters reports that the 600 hourly workers of the engine plant will be offered either new jobs at a nearby transmission factory or buyouts. The UAW said that the deal with Ford “secured over $6 billion in major product investments in American facilities, creating and retaining over 8,500 jobs for our communities.”

Related: UAW Members Approve GM Contract, End Longest Auto Strike In 50 Years

The engine factory in Romeo, Michigan will close sometime in the future, under the agreement with the UAW.

Back in 2017, Ford announced a $150 million investment into said engine factory to boost production capacity and for new tooling. The plant produces engines for models like Ford Super Duty, E-Series, Ford Shelby GT 350 Mustang and Shelby GT350R Mustang, along with components for F-Series, Mustang, Explorer and Edge.

U.S. President Donald Trump publicly praised Ford for the investment in Romeo and two other plants in Michigan on Twitter back then.

The details of Ford’s deal with the UAW have not been released yet but they are expected to be similar to the deal the union signed with General Motors. A source familiar with the matter said that the deal includes a signing bonus of $9,000 per person. Union members at GM received $11,000 per person.

UAW leaders will meet on Friday to potentially approve the deal, which then would be sent to the 55,000 members at Ford for final approval, according to a union spokesman.