The building of the small but sophisticated 2.0-liter and 2.3-liter EcoBoost engines has started in the U.S., the first time Ford Motor Company (NYSE:F) is building the engines in the country. The company previously used to ship the engines from Spain. The production of the small engines started at the company’s Cleveland Engine Plant in Ohio.
Ford Motor Company (NYSE:F) relied on the small engines supply from its Valencia plant in Spain. The plant produced the engines for both the U.S. and the vehicle assembly in Europe. While the production of the small engines has been moved to the U.S., the Valencia plant will continue producing the 2-liter engine for Europe vehicle assembly.
The 2-lite- engine will power the new 2015 Ford Edge nameplate, which is expected to come to market soon. The 2.3-liter-engine is already in Explorer, Ford Mustang and Lincoln MKC.
According to Ford Motor Company (NYSE:F)’s VP of North America manufacturing, Bruce Hettle, Cleveland Engine plant is responsible for most of the fuel-efficient vehicles the company produces. There are over 4 million vehicles powered by the EcoBoost engine on the road currently, Hettle disclosed. With the two technologically advanced engines project coming to Cleveland Engine, the team there is said to be excited about the development.
Demand for utility vehicles
There is strong and growing demand for crossover nameplates such as Explorer and Edge. Therefore, local production of the engines is expected to help support the anticipated huge demand for the cars. Accord to Ford’s VP of U.S. sales, Mark LaNeve, sales of utility vehicles is growing faster in the region than the global auto industry.
$200 million to retool Cleveland plant
The Cleveland Engine plant has about 1,300 workers. Ford Motor Company (NYSE:F) injected $200 million to improve the plant and added 450 positions in 2013 to ensure that the production of the sophisticated engines could be done in North America. Cleveland is where Ford builds is other engines such as 3.5-liter EcoBoost V6 and 3.7-liter V6.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of USmarketsDaily.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: