October 8, 2002


Ford’s agreement with CAW union includes $600 million investment in Oakville assembly plant

Oakville, Ontario – Ford of Canada announced details of the 2002 collective bargaining agreement with the Canadian Auto Workers (CAW) union on Monday.

Key elements of the new three-year agreement, which was ratified by Ford’s
CAW-represented employees, include:

  • Closure of the Ontario Truck Plant in July 2004
  • $600 million investment in the Oakville Assembly Plant for the next-generation Ford Windstar and the all-new Mercury Monterey minivans
  • Committing 900 jobs to the Oakville site during the term of this
    agreement.

“We are extremely pleased that the CAW members have ratified the 2002
collective bargaining agreement,” said Jim Padilla, Ford group vice president,
North America. “We believe this settlement protects the interests of our CAW-
represented employees while furthering Ford’s progress on key elements of the
North American Revitalization Plan.”

The next-generation Ford Windstar and an all-new version from Mercury, to
be named Monterey, will be manufactured at the Oakville Assembly Plant
beginning in the third quarter of 2003. Engines for the new model will be
sourced from Ford’s Essex Engine Plant in Windsor, Ontario. The 2004 Mercury Monterey minivan will go on sale in the fall of 2003.

The company’s investment in Oakville will fund major tooling and launch
costs for the all-new minivans. It is anticipated that high market acceptance of these new products could, in the future, necessitate a work pattern of three shifts.

“The $600 million investment reaffirms Oakville Assembly Plant’s
unique role as North America’s only source of the Ford and now Mercury
minivans,” said Alain Batty, President and CEO, Ford Motor Company of Canada.
“This investment is part of a Ford strategic vision that will strengthen our
North American Revitalization Plan.”

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