Kuga in America

[SVT666]

Ford Kuga to be built in US and exported to Europe
BY MARK KLEIS

   
In what is most likely meant to be a very visible display of Ford?s intentions to deliver on their promises to the UAW over recent contract concessions, Ford confirms future of Kuga in the US.

LeftLane reported in early March, 2009 that Ford could likely move Kuga production to US soil due to a weak dollar. Now, with the dollar hitting record lows Ford has come out to publicly announce their intentions to produce the Kuga at the Louisville, Kentucky assembly plant beginning in 2011.

Previous reporting was based on the speculation that Ford may introduce the Kuga to the US market, with or without its current nameplate, and purely for North American consumption. Now Ford has announced that it will be capable of producing and exporting as many as 80,000 Kuga vehicles to the European market each year from the Louisville, Kentucky Assembly plant.

This unique change is explained by Barclays Capital auto analyst Brian Johnson, ?This makes sense because western Europe is not a particularly cheap place to make cars.? Brian goes on to explain that Ford?s net labor costs could be $10 an hour lower in the US than in Germany.

The shift of production location to the US due to the weakening dollar makes an even stronger business case for Ford to expand its ?One Ford? business model and begin selling the Kuga platform, Kuga name or not, here in the US.

[Colonel Cadillac]

That's a good move for Ford definitely.

[GoCougs]

But they're doing it to appease the monstrous UAW. Left to its own devices the Ford when never bring it here.

The whole weak dollar thing isn't a factor; that can change in a matter of months (i.e., that has nothing to do with the decision).

[Colonel Cadillac]

But they're doing it to appease the monstrous UAW. Left to its own devices the Ford when never bring it here.

The whole weak dollar thing isn't a factor; that can change in a matter of months (i.e., that has nothing to do with the decision).

Why would the weak dollar have nothing to do with the decision? That's ridiculous.

[TBR]

But they're doing it to appease the monstrous UAW. Left to its own devices the Ford when never bring it here.

The whole weak dollar thing isn't a factor; that can change in a matter of months (i.e., that has nothing to do with the decision).

With an ever widening trade deficit and an ever growing federal debt, it wouldn't exactly be a big risk to say that the dollar will continue to stay weak. But, I think you are right in saying that is a minor factor. Even so, I don't think you are correct in saying that they are doing this because of the UAW. Rather, it simply is more expensive to build a car in western Europe than it is in the USA, especially after recent UAW concessions.

[GoCougs]

Why would the weak dollar have nothing to do with the decision? That's ridiculous.

In case you're not being sarcastic, weak currency compels foreign buyers to buy domestic goods.

In the case that you are, it is a substantial effort in both time and money to move manufacturing fascilities; currency can change much faster.

With an ever widening trade deficit and an ever growing federal debt, it wouldn't exactly be a big risk to say that the dollar will continue to stay weak. But, I think you are right in saying that is a minor factor. Even so, I don't think you are correct in saying that they are doing this because of the UAW. Rather, it simply is more expensive to build a car in western Europe than it is in the USA, especially after recent UAW concessions.

But how long will it stay weak? The significant cost for UAW labor and coming taxation and anti-business regulation will be forever.

It's the article's assertion that Ford is doing this to appease the UAW (first sentence).

[TBR]

Oh, I guess I should read better.

Still, in light of the high cost of manufacturing in Western Europe, I am inclined to think that Ford might have done this even without the benefit of appeasing the UAW.

[GoCougs]

Yes, I have no doubt it is very expensive to produce in Europe; their labor, taxation and regulation issues are much worse.

[TBR]

Yes, I have no doubt it is very expensive to produce in Europe; their labor, taxation and regulation issues are much worse.

Hence their stagnant economies and well below replacement rate birth rates.

[Raza]

Why would the weak dollar have nothing to do with the decision? That's ridiculous.

FX rates are pretty volatile. 

[Tave]

Kay-UGA!

[omicron]

Kuga? Bah.



Cougar.

[dazzleman]

Kuga? Bah.



Cougar.

Oh man, I love that car.  That was one of my favorite cars when I was a kid, too young to drive.  I swore I'd get one once I started driving.  But by that time, they were too old, and since they hadn't yet reached classic car status, they were mustly run-down beaters that were available.  I had to abandon the idea after I looked a few that barely ran, that I couldn't afford to fix.  Still, I love those cars.