Ford says problems solved in Chicago production

A year after admitting a botched rollout led to quality issues with new SUVs produced in Chicago, Ford executives said the problems are in the past and production lines here are working three shifts per day to meet increasing demand.

The Chicago Assembly Plant at 12600 S. Torrence Ave. and the Chicago Heights stamping plant now employ about 7,100 workers, the company said. That’s about 1,000 more than a year ago.

John Savona, Ford’s vice president of North American manufacturing, said the plants are busy around the clock fulfilling orders for the Ford Explorer and Lincoln Aviator mid-size SUVs.

The automaker’s sales summary for the third quarter reported the Explorer registered a 74% gain compared with the prior quarter, while the Aviator, a lower volume but higher priced vehicle, saw a 222% increase in volume. Chicago also produces the Police Interceptor SUV.

Ford is expected to issue its third-quarter earnings Oct. 28.

“We’re really proud of the vehicles we are building in Chicago,” Savona said. “The quality by all available measures has been terrific.”

He said the Chicago operations, which resumed May 18 after a two-month closure due to the coronavirus, are integral to Ford’s identity as the “most American” of domestic vehicle makers, although parts can be sourced anywhere.

The company on Tuesday released a study by Boston Consulting Group quantifying Ford’s role in the regional economy. The study said Ford accounts for more than 60,000 direct and indirect jobs in Illinois and contributes $6.8 billion to the state’s gross domestic product. The Federal Reserve said Illinois’ total GDP was almost $900 billion in 2019.

The plants’ busy schedule and the sales of their underlying products mark a turnaround for Ford, which in October 2019 said it was overly ambitious in its complete retooling of the Chicago Assembly Plant to switch it to the Explorer from the phased-out Ford Taurus sedan. The work earlier that year cost a billion dollars and was accomplished with just a month of downtime, but Chicago-produced vehicles with assorted flaws that had to be fixed elsewhere.

“We, simply put, we took on too much. We signed up for too much at launch,” Joe Hinrichs, then-president of the Americas for Ford, told analysts last year. He left the company early in 2020.

Savona said in addition to solving quality issues, Ford’s plants are operating with safety protocols for combating COVID-19 that have the support of the United Auto Workers union. He said Ford has had limited absenteeism here and can draw on temporary workers when necessary.

Some suppliers, however, have experienced higher absenteeism and are straining to keep up with Ford’s demand, Savona said.

Ford said it works with 319 suppliers across Illinois, and its purchasing in the state exceeds $2.2 billion annually.

The Boston Consulting report highlighted Ford’s impact throughout the U.S., saying the company supports 1 million American jobs and delivers $100 billion into the national economy.

The Torrence Avenue plant dates from 1924 and is Ford’s oldest continuously operated manufacturing site. Its product history includes the Model T, Model A and the Thunderbird.

Sun-Times file