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Ford investing $500M in engine plant for 2.7L EcoBoost production

Ohio is a hot area for Ford at the moment with the announcement just a few weeks ago that production of the next-generation F-650/F-750 medium-duty trucks would move from Mexico to the Ohio Assembly Plant in Avon Lake, Ohio. Now, Ford is investing $500 million to hire 300 workers at its Lima Engine Plant in Lima, Ohio, to add production of the twin-turbo 2.7-liter EcoBoost V6 for the 2015 F-150.
The latest investment will be used to add a new flexible engine assembly system and renovate 700,000 square feet of the plant for machining and assembly areas. The Lima factory already builds Ford's 3.5-liter and 3.7-liter Duratec V6 engines. The plant opened in 1957, and it's on track to build its 40 millionth engine later this year.
Ford claims that the 2.7-liter EcoBoost will offer V8 performance with better efficiency in the F-150. It comes standard with intelligent stop/start that doesn't activate when the truck is towing or in four-wheel drive, and it's made from a combination of compacted graphite iron and aluminum for low weight and high strength. The company says that V6 engines have already proven popular in the F-150 with 57 percent of trucks in 2014 being equipped with either the naturally aspirated 3.7-liter or turbocharged 3.5-liter EcoBoost engines.

Ford Explorer problems gutted third-quarter sales

In early September, the Detroit Free Press published a feature noting numerous problems Ford's having with the 2020 Explorer and 2020 Lincoln Aviator launches. Issues with both SUVs, built at Ford's Chicago Assembly Plant, were so rife and dire that the automaker was trucking the vehicles 275 miles away to Michigan for repairs. Bloomberg reported earlier this month that Explorer's third-quarter sales dropped 48 percent compared to the previous model in 2018, with dealers unable to get enough units on lots for customers. Nor is the snafu over: Automotive News reports that another "batch of about 2,500 Explorers in need of repairs" arrived recently in Michigan, and sales through the first nine months of 2019 are down 31 percent. Sales dips during model changeovers are to be expected as old inventory gets sold down and new production ramps up, but this is different. Ford U.S. sales boss Mark LaNeve told Bloomberg earlier this month, "We’ve got adequate inventory in our stores. For Q4, availability wonÂ’t be an issue. WeÂ’ll be able to hit our stride with Explorer starting now." It's hard to know whether that's true, with thousands of Explorers still piling into Michigan; the batch AN mentioned represents about 5 days of sales during an average month in 2018, before the drawdown and interruptions hampered matters. And when Consumer Reports tested the Ford Explorer it bought this summer, it titled the review, "2020 Ford Explorer drives nicely but has many flaws / Poor interior quality and a high price overshadow the SUV's improvements."   On top of that, the AN piece mentions a new impediment to uncorking the Explorer sales stream: Worker strife in the Chicago plant. Allegedly, "Roving groups of workers are intimidating other employees, creating a hostile environment, the people said. ThatÂ’s driving up turnover and leaving some vehicle assembly unfinished, contributing to the company having to complete the work at the Michigan factory or at dealerships, the people said." Ford's been fined twice before for the same kinds of issues at its plants, once in 1999, again in 2017, but a spokesperson said Ford isn't aware of any such problems now. The pressure otherwise has got to be unpleasant for everyone on the Explorer team, from CEO Jim Hackett down. The automaker was meant to be "turning the corner" in April, but as of now, shares are down, credit rating is down, earnings are down.

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