Ford Announces Additional $1 Billion Investment in Chicago Plant – 500 New Jobs…

It’s an interesting exercise to consider just how much national economic policy shifts can impact U.S. workers and industry.  Only a few years ago the ‘best play‘ for auto executives was shifting manufacturing overseas or to Mexico.

Today, with the advent of a comprehensive energy policy, enhanced U.S. investment incentives, re-prioritized trade expectations, focused tariffs, lowered regulations, and expanded  economic freedom allowing consumer demand to drive investment decisions, the entire landscape of a massive industry shifts.

Now the ‘best play‘ is for multinational firms to focus on expanded investment directly in the U.S.A.  Simple, yet stunningly consequential:

CHICAGO – Ford said Thursday it will hire 500 workers and invest $1 billion in its Chicago assembly operations to help keep up with booming demand for sport and crossover-utility vehicles.

The announcement comes on the heels of cross-town rival GM axing 4,000 workers, and is part of the $11 billion restructuring Ford announced last fall that includes dropping all passenger car models except the iconic Mustang. It is shifting resources to light trucks, like those it is building in the Windy City.

[…] The investment plan will allow Ford to expand capacity for the Explorer as well as the new Explorer Police Interceptor it is launching. Ford has traditionally dominated the market for police vehicles and expects the Interceptor — which debuted last month at the Detroit Auto Show — to expand its hold.

Also scheduled to go into the Chicago Assembly Plant is the all-new Lincoln Aviator, a big, three-row sedan that is winning early praise and could become a critical part of Ford’s drive to revive the long-struggling luxury brand.

The $1 billion investment will be used to add “advanced manufacturing technologies,” according to company sources, and also to train workers to both boost plant efficiency and improve quality.  (read more)

This decision by FORD actually becomes an example of what CTH was predicting prior to the 2016 election.  Specifically about FORD; and specifically about the auto industry.

FLASHBACK TO 2016: […]  This key distinction is the heart of the Economic Patriotism argument.

An argument that Bernie Sanders has made effectively, Donald Trump has also recognized, and one which through the course of time -and history has empirically evidenced- creates terrible long-term consequences for the rapidly diminishing middle class U.S. worker.

The economic patriotism distinction is also where traditionally minded conservatives, like myself, have reevaluated the bigger picture and accepted the following:  In a global world the concept of traditional economic models (for free-market capitalism) are no longer working on behalf of the United States of America – because there is no national pride or incentive attached to the end goal, profit.

Paul Samuelson, the Nobel laureate from the Massachusetts Institute of Technology, recalled that John Maynard Keynes once was challenged for altering his position on some economic issue:

“When my information changes,” said Keynes “I change my mind. What do you do Sir?”

While I have never agreed with Keynesian economic theory, Keynes attributed quote itself is never more apropos than today’s 2016 American economics argument amid various conservatives.   What good is Mark Levin’s definition of conservatism, when there’s no middle class America left to conserve?

What good are George Will’s free market theories when the end result is the outflow of American wealth into poorer, less economically developed countries, while we EBT ourselves into a national debt crisis because we are trying to sustain the diminished value of the American worker?

Not only is this historic approach now rapidly becoming the pathway into an unrecoverable American economic death spiral, it is also global wealth distribution done by Wall Street, not Main Street.

The result, our result, is an ever expanding, seemingly impossible to stop, wealth gap, creating an unnatural and profoundly unhealthy class system, in America, between the “Rich” and “Poor”.

We do not need socialism to fix the problem, we need economic patriotism from industrial giants, Main Street, who value the principles behind putting American-workers-First. (link)

Thankfully, two-months after writing everything above, the American electorate voted to put a Main Street President Trump into office.  Today U.S. jobs are plentiful, wages are growing, inflation is low and entire industries are recommitting to the U.S. worker.

Ironically, a few days ago that same economically patriotic president just said “We will never be a socialist country”

Funny how that happens.

 

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This entry was posted in Auto Sector, Big Government, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized, US Treasury, USA, USMCA. Bookmark the permalink.

82 Responses to Ford Announces Additional $1 Billion Investment in Chicago Plant – 500 New Jobs…

  1. Henry says:

    While bailed out GM moves to where?
    Ha

    Liked by 5 people

  2. anniefannie says:

    Another Trump WIN!!

    Liked by 9 people

  3. Trapper says:

    Now let’s abolish tje CAFE mileage refulations that killed the sedans and wagons.

    Liked by 7 people

    • Carrie2 says:

      Trapper, I prefer a sedan, thank you, and never ever a truck and many of them always being recalled.

      Like

    • swal106 says:

      That is not what killed the sedans and wagons Trapper. What did them in was the advent of the small, turbocharged engine. Most people, according to the manufacturers surveys, bought cars because they got better gas mileage than the SUV’s by being lighter, and the SUV’s had to have a bigger engine. Now, with the extra power supplied by the turbo they get virtually the same gas mileage. Therefore people are more comfortable driving a small SUV that is more versatile.

      Liked by 1 person

      • trapper says:

        There is not a single SUV or crossover that can carry as much as a traditional station wagon. No comparison. The only reason they chased mileage and smaller engines is the CAFE regulations on fleet mileage, which they got around with SUV’s built on truck platforms. The CAFE regs completely screwed up the market. Just do away with them and let people buy, and reject, what they want and don’t want. And don’t even get me started on coal-powered cars.

        Like

        • WSB says:

          Tell me about the last model Toyota Venza 6-cylinder.

          Like

        • SwampRatTerrier says:

          Trapper I agree with you totally.

          Someone once said, a lot of women discovered they liked riding up high in SUVs and looking down on other people.

          Like

          • WSB says:

            I found out a few years back being in a sedan, I could not see around the higher vehicles on the highway and especially in parking lots; thus I switched to a crossover.

            Higher, but not too high for me to get into.

            Liked by 1 person

        • Garrison Hall says:

          “The only reason they chased mileage and smaller engines is the CAFE regulations on fleet mileage, which they got around with SUV’s built on truck platforms.”

          This is true. Government intervention into the marketplace in the form of ridiculous CAFE standards cause American car companies to get of the small sedan business.

          Like

  4. notfaded1 says:

    This is why we elected VSGPDJT. Everything he ran on he’s doing and this good news is just that… MORE GOOD NEWS! Just try running against this economy and success Democrats. They can’t so it’s all about still trying to reverse the 2016 election somehow. It really is the definition of insanity. Liberalism really is a mental disease.

    Liked by 9 people

  5. Dealers have little to no inventory; the economy is so strong……………….

    Liked by 4 people

    • Volkswagen, Ford building plants, hiring Americans. Great for the economy. Unfortunately, you would never believe it reading the leftist Detroit News. Every time an automaker lays off a shift that rag makes it look like disaster, depression. They have very little to say good about the economy. To read the Detroit News one would think the auto industry is in disaster because of ‘orange man’.

      Liked by 2 people

  6. Mncpo(ret) says:

    It’s astonishing how quickly the economy has turned! It took decades to exfiltrate the money, jobs and plants overseas. When I first “got” Main Street vs Wall Street, I figured it would take both of his terms to get anything back. The speed is breathtaking.
    These CEOs don’t bet billions on a quick fix, they’re looking long term (as they should). He has revolutionized our entire economy in less than 3 years. Staggering.

    Liked by 13 people

  7. thedoc00 says:

    It would be interesting to see the demographics of the folks who fill the 500 jobs.

    Liked by 2 people

    • Janie M. says:

      Do not forget, docoo, IL is a sanctuary STATE. Bill signed with this declaration by our former RINO governor.

      Liked by 1 person

      • covfefe999 says:

        I don’t think any of those jobs will go to illegals. Those plant jobs are highly sought after and there are tons of people who apply for them. And the union pretty much sets the wages.

        Liked by 2 people

        • Janie M. says:

          covfefe999, even though snake-in-the-grass Luis Gutierrez (D-IL) is no longer in office, I could see him leading huge protests in front of the plant with illegals demanding they be given jobs.

          Like

        • thedoc00 says:

          You misunderstood, I am interested in seeing how many legal minorities are hired. The President has been on a path to improve the economic status of minorities especially in disadvantaged areas like Chicago. This may be a very positive step along that path.

          Like

  8. notfaded1 says:

    I love that… What good is Mark Levin’s definition of conservatism, when there’s no middle class America left to conserve?
    This is really what Trump is all about. AMEN. We all benefit from a stronger middle class work real jobs and income.

    One thing liberals don’t get… You can take all the billionaires money and it won’t come close to paying for any green new deal.

    Liked by 6 people

    • Carrie2 says:

      notfaded1, Pelosi did not allow AOC’s Green deal and so I am sure it was retribution for the AOC stupid protesting against Pelosi. Love the infighting amongst the democrats and hope it continues until we close down this Congress and start a new and different Congress not to be in the cesspool of cesspools DC.

      Liked by 2 people

        • Dennis Leonard says:

          Just a few quotes from your link.Very good site,

          “As for the Democrats. Well. What can we say? Trump Derangement Syndrome is literally driving them insane. The Democrats have made it abundantly clear what their choice has been. They have declared, in no uncertain terms, that Democrats are only interested in two things. 1) Resist, oppose, disrupt and attack everything Trump Does or tries to do. 2) Push every item on the globalists agenda like especially WIDE OPEN BOARDERS and ZERO enforcement of immigration laws.”

          Does this ring a bell as in Virginia,they will take their own out to set this as the norm,

          “Of course the most recent example of how low the Democrats are willing to go was their last ditch effort to destroy the life of Judge Brett Kavanaugh and his family. They turned what should have been a dignified, respectful process into a gutter circus by waiting until the hearings were essentially over to drag out a bunch of totally unsubstantiated and uncorroborated allegations of horrendous sexual misconduct when he was 17 years old “in high school” of all things. They all said Judge Kavanaugh had no right to the presumption of innocence until proven guilty. They attempted to hang him and his family in the Court of Public Opinion where you are guilty until proven innocent!”

          Like

      • SwampRatTerrier says:

        Thanks for that good news on the “Democrat Same Old Brown B.S.”

        Like

  9. ristvan says:

    From a PhD level classically trained econometrician/JD/MBA, a personal anecdote.
    I came out of grad school totally believing in free trade. Joined the Boston Consulting Group, and one of my first cases was Harley Davidson. The corporate comglomerate ‘We make weekends’ owner knew HD was under Japanese motorcycle attack, decided to shut HD and milk its spare parts business for cash. Wanted a second opinion for political cover, so hired BCG because we had issued twomyears before a UK report effectively condemning the UK motorcycle industry (remember Triumph?), assuming BCG would agree and that would give the Board cover.

    I drew the short straw and spent 6weeks in Japan visiting the competition, tier one suppliers, gov regulators, and dealers.

    My free trade beliefsfs were shattered by the following. HD had a plan to enter the Japanese market because its motorcycles had appeal to Yakuza gangs. Would put price pressure on high end Honda, Yamaha, Kawasaki, Suzuki big bikes. At that time, the Japanese 4 made nothing over 750cc (all ‘modern’ overbore high rpm designs) and HD made nothing under 1000cc (older overstroke low rpm designs from an older era of machine tool precision). So the Japanese government changed the motorcycle license exam for any bike over 750cc, adding the ‘safety’ requirement that the applicant lay the bike down on its side, then right it and ride it. Virtually impossible for short stature Japanese, even tough guy Yakuza—not enough height leverage. “Free trade?!?” NOT. Non tariff total barrier.

    I also discovered they were dumping. And that the ‘Yakuza
    ‘ segment was very real. We later showed also real in the US and Europe, then about 1/3 of the big bike world market.
    So we said HD can be saved: file a 301 antidumping to buy price relief time, fix your quality problems, and market the heck out of that bad boy opHD overstroke rumble.
    Board disagreed. HD management believed. Our report got them a leveraged buyout to execute our five year plan. The rest is history.

    Liked by 13 people

  10. CNY3 says:

    Is that all the bailout $$$?

    Liked by 1 person

  11. CNY3 says:

    To add to SD’s last sentence, there’s that awesome moment, after those very words when the camera pans across the room as people are giving the president a standing ovation and there is Bernie Sanders’ face growing more red as the clapping continues. Classic!!!😆

    Liked by 8 people

  12. bertdilbert says:

    Why invest in Chicago? The city is broke, the state is broke and Democrats are going to try and get their pension money from somebody. Clearly there are going to be future tax issues.

    Liked by 2 people

    • ristvan says:

      The South Torrence plant has been there since 1926. Its first cas was the Model T. Now 5800 workers in two SE Chicago locations. Torrence assembly, and Chicago Heights stamping plant. Too much already invested to pull out and go greenfield.
      Chicago will go bust. Illinois might. Won’t much affect Ford’s plants there.

      Liked by 1 person

    • ThePoeticJusticeWarrior says:

      Chicago is the railhub, for the east side of the Mississippi River, Kansas city, Missouri, is the Westside hub.

      Logistics=Big Money

      Liked by 6 people

  13. tonyE says:

    Ford is building cop cars right where they are needed them the most.

    Liked by 6 people

  14. James Street says:

    Looks like Steve Bannon sitting at the head of the table.

    Like

  15. alonzo1956 says:

    Thank You Sundance! Some of your articles REALLY MAKE MY DAY! I will never get tired of this kind of winning E V E R!

    Liked by 3 people

  16. Garry Smith says:

    While all these incentives are wonderful, ultimately North American auto manufacturers have to design and build cars that are superior to offshore brands and give purchasers BETTER VALUE.

    Liked by 4 people

    • SwampRatTerrier says:

      Built better and tailored to American needs and desires.

      Have you seen the crappy furniture designed to sell to the non-discriminating all around the world? Total waste of money and space in your home.

      Like

  17. sucesfuloser says:

    Who is that siting at the far end head of the table, look familiar?

    Like

  18. lemmus1 says:

    Don’t forget that the US Chamber of Commerce/Tom Donahue (the largest lobbying group in DC) is ultimately controlled by the same people making these long-term investments.

    Right now POTUS is facing strong headwinds from the CoC lobbyists looking to protect the trillions their members have invested in the Wall Street/Globalist economic model.

    But as Trump’s Main Street economic model takes hold, those winds are going to slow down and then shift. As will the CoC. Which, in turn, will make it much harder to reverse the Main Street model even after Trump departs the scene. He who laughs last… 🤣

    Liked by 2 people

    • bessie2003 says:

      Wonder if it’s possible, but, if Mr. Donahue keeps up his anti-Main Street push, could the US Chamber of Commerce group hold a meeting – and vote him, Donahue, out???

      I sure would if he was the one getting in the way of revitalizing my manufacturing business.

      Liked by 1 person

      • SwampRatTerrier says:

        Tom could just take over the National Ass. of Realtors which is the 2nd Largest Lobbying Group in the Universe!

        Like

        • SwampRatTerrier says:

          p 50 Lobbying Spenders of 2016
          Client 2016 Spending 2015 Spending 2015 Rank
          U.S. Chamber of Commerce $103,950,000 $84,730,000 1
          National Association of Realtors $64,821,111 $37,788,407 2
          Blue Cross Blue Shield $25,006,109 $23,702,049 3
          American Hospital Association $20,970,809 $20,687,935 7
          Pharmaceutical Research & Manufacturers of America $19,730,000 $18,920,000 9
          American Medical Association $19,410,000 $21,930,000 4
          Boeing $17,020,000 $21,921,000 5
          National Association of Broadcasters $16,438,000 $17,400,000 10
          AT&T $16,370,000 $16,370,000 13
          Business Roundtable $15,700,000 $19,250,000 8
          Alphabet $15,430,000 $16,660,000 12
          Comcast $14,330,000 $15,680,000 14
          Southern Co. $13,900,000 $12,860,000 18
          Dow Chemical $13,635,982 $10,820,000 26
          Lockheed Martin $13,615,811 $13,954,053 17
          NCTA – The Internet and Telephone Assoc. $13,420,000 $14,120,000 16
          FedEx $12,541,000 $12,405,835 20
          Northrop Grumman $12,050,000 $11,020,000 24
          Exxon Mobil $11,840,000 $11,980,000 21
          Amazon $11,354,000 $9,435,000 34
          CTIA $10,970,000 $10,150,000 29
          General Dynamics $10,739,944 $10,259,890 28
          Verizon Communications $10,080,000 $11,430,000 23
          Altria Group $10,060,000 $9,630,000 32
          Amgen $9,860,000 $10,525,000 27
          Koch Industries $9,840,000 $10,830,000 25
          American Bankers Association $9,831,000 $12,690,000 19
          Pfizer $9,750,000 $9,417,650 35
          Prudential Financial $9,400,000 $7,962,500 47
          Biotechnology Innovation Organization $9,230,000 $8,350,000 42
          United Technologies $9,165,000 $11,470,000 22
          American Chemistry Council $9,020,000 $10,050,000 30
          Royal Dutch Shell $8,990,000 $8,700,000 37
          AARP $8,710,000 $7,559,000 54
          Microsoft $8,710,000 $8,490,000 39
          Facebook $8,692,000 $9,850,000 31
          Edison Electric Institute $8,620,000 $8,350,000 42
          Oracle $8,620,000 $8,470,000 40
          General Motors $8,500,000 $9,120,000 36
          National Association of Manufacturers $8,490,014 $16,950,000 11
          National Amusements (CBS & Viacom) $8,441,000 $7,980,000 46
          T-Mobile $8,089,900 $6,127,000 66
          Bayer $7,990,000 $7,730,000 51
          Coca-Cola $7,930,000 $8,670,000 38
          American Airlines $7,870,000 $6,600,000 61
          United Parcel Service $7,767,848 $8,155,856 45
          Chevron $7,470,000 $7,200,000 56
          Alliance of Automobile Manufacturers $7,452,500 $7,640,000 53
          Securities Industry & Financial Market Assoc. $7,400,000 $7,770,000 50
          AbbVie $7,260,000 $5,220,000 88

          Data provided to The Hill by the Center for Responsive Politics, opensecrets.org

          https://thehill.com/business-a-lobbying/business-a-lobbying/318177-lobbyings-top-50-whos-spending-big

          Like

    • Way to sneak that punch line in, lemmus1 …
      “As will the CoC.”

      Building on that Theme:

      • Everyone crazed-out today – markets in particular – with the announcement that President Trump won’t be meeting with China’s Xi before the March 1 Tariff Hike on China.

      • NO ONE seized on the momentous SCRAMBLE to exit Sourcing-from-China.

      • The Stuck-on-Stupid and Trump naysayers will RACE to the best alternative Nations with the Infrastructure, Supply Chain Sources and Workforce to draw on.

      • The Strategic Visionaries will see how MAGAnomics is turbo-charging profit potential to BUILD and HIRE in USA.

      • NO ONE has projected the impact of President Trump’s Infrastructure EO for the Administration’s Leaders to “Buy USA” … or the LEVERAGE delivered by Public-Private Infrastructure Partnerships that use 20% Federal Funding to draw 80% State/Local/Private Investment.

      ILLUSTRATION:
      • $800 Billion Federal Spending (Annually) under Trump’s E.O. to Buy USA
      … Assume $200 Billion of it spent in Public-Private Partnerships
      • $800 Billion MORE from Private-Partner Sources
      … ALSO under Trump’s E.O. to Buy USA
      … = $1.6 Trillion “Buy USA”
      • 50% assumed to be Infrastructure Goods
      … = $800 Billion
      • 25% of Infrastructure Goods assumed to be sourced in past from China
      … = $200 Billion

      HOLY SMOKES:
      • Trump’s E.O. INSTANTLY cuts China Deficit in HALF.
      • Trump’s E.O. INSTANTLY adds $400 B or 2% to Annual GDP.

      Liked by 3 people

      • This looks like a sure thing, given that
        • Trump said he’d need to meet with China’s Xi “once or twice” to close a Trade Deal.
        • Trump won’t be meeting with Xi before March 1st.
        • Trump’s Tariffs increase to 25% on $200 B of Imports from China on March 2nd.

        Liked by 3 people

      • Dutchman says:

        BKR;
        I appreciate your analyses posts, and I actually understand this one!

        That ‘Buy American’ executive order wasn’t mere symbolism, Potus used his pen like a HAMMER, to further slap down China and multinationals.

        As far as not meeting Xi, not surprised, Chicoms are not wanting to slit their own throats by agreeing to DJT’s terms.

        They are gonna have to experience a lot more hurt, and realise their problems won’t be resolved by PDJT’s Impeachment or loss in 2020, before they will agree to verifiable and enforceable trade deal, with end to cheating.

        So, we ratchet up to 25%, on another 200 billion, Keep this up, our deficit may actually be effected!

        Liked by 2 people

      • Stillwater says:

        BKR, thanks for simplifying and condensing these insights/implications by threading them into a causal chain that we can follow. I often wonder how you find all these nuggets and understand how they relate and feed into the broad Trump agenda.

        Regarding the infrastructure investment, I seem to recall someone mentioning that Elaine Chow had been courting Chinese companies for US infrastructure projects (I don’t know if this furthering her family interests or it this is part of the Trump strategy). My memory could be mistaken.

        Then we have Trump’s recent EO on Jan. 31, 2019 directing gov. departments to buy American where possible.

        Then in the Sundance’s recent post today titled “Canada Discovering ‘America First’ Consequences Within USMCA”, we have a Rebel Media interview where Manny pointed out that this EO does not effect “existing rights or obligations under international agreements”. Manny goes on to say that Mexico would be able to participate in the infrastructure projects due to the recent USMCA but Canada will not be able to participate as they came late to the agreement which is essentially a US/Mexico agreement.

        Manny goes on to state that he believes Trump signed this EO on Jan 31 to put pressure on China to sign a US/China agreement sooner rather than later.

        I’m not sure what all this means but it’s interesting to watch the events unfold.

        Liked by 2 people

        • Manny’s insights – and awed respect for POTUS – were gold, Stillwater.

          I think President Trump signed the E.O. last week to gut the USCOC and Globalists and Senate UniParty of any notion they’d be able to reverse his Manufacturing Renaissance under the BILATERAL Trade Reciprocity Initiative.

          Liked by 2 people

  19. namberak says:

    Chicago? They’re making Glock knock offs or something, right?

    Like

  20. covfefe999 says:

    For those of you who want to know the exact locations:

    The overhaul of the plants — an assembly plant at 12600 S. Torrence Ave. in Chicago and a stamping plant in Chicago Heights — is expected to begin in March and be completed in the spring. (Chicago Tribune)

    Liked by 1 person

  21. Jason Ross says:

    Meanwhile, New York State spent nearly $1Billion of taxpayer’s money to construct a dumpster fire for Tesla, employing a couple hundred temps.

    https://www.wivb.com/news/investigates/state-senator-calls-tesla-complaints-disturbing-/1760241038

    Like

  22. Davey says:

    GM is pulling out of Canada, after we bailed them out too. Thanks Trudeau. Good work. Trudeau probably told them they needed more trannies on the assembly line.

    Liked by 1 person

  23. WSB says:

    “Thankfully, two-months after writing everything above, the American electorate voted to put a Main Street President Trump into office. Today U.S. jobs are plentiful, wages are growing, inflation is low and entire industries are recommitting to the U.S. worker.

    Ironically, a few days ago that same economically patriotic president just said “We will never be a socialist country”…

    Funny how that happens.”

    Just precious, SD. Thank you for being our mysterious mentor. I will always remember. You changed my life.

    Liked by 1 person

  24. bkrg2 says:

    Another win
    I was born one mile from this Ford factory. Its gone through an amazing expansion over the past 5+ years

    I now live about 20 miles away. My neighbor is manager there and was telling me about this plant expansion. Ford in USA is getting out of cars (except Mustang and 2 others I forget).

    Good news for my hometown and USA

    Like

  25. LibertyONE says:

    MEANWHILE GM who rec’d BILLIONS $$$ in a gov’t bailout, headed by a Feminazi making $22 million a year lays off thousands, while EXPANDING in Mexico & China.

    Like

  26. And Yet, ALL the WSJ, Bloomberg & CNBC….(Talking-Heads)….Keep REGURGITATING the same old….DOOM-N-GLOOM….Bear Stock Market, Recession Imminent & Pessimistic Consumer Confidence….DIATRIBE.
    ~A whole lot of (Short-Selling-Stock) going on Here.~

    Like

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