That sound you hear? Ford changing its mind.
It won’t be building the Kuga in Louisville:
Ford Motor Co. has canceled plans to move production of a small sport-utility vehicle from Europe to Kentucky as currency exchange rates no longer favor U.S. production, according to two people familiar with the decision.
Ford had planned to shift the Kuga model next year to Louisville from Saarlouis, Germany, to take advantage of lower labor costs and the weaker dollar, according to the people, who asked not to be identified because the plan is private. With the euro falling, Ford plans to continue producing the Kuga in Germany, the people said.
“This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S.,” Johnson said. “Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t.”
Rocky Comito, president of UAW Local 862, which represents Ford workers at the Louisville plant, didn’t respond to a telephone call seeking comment.
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This is just one of many recent instances in which companies have decided to bail on Kentucky.