Partnership, incentives save Ford plant in Hazelwood

Gov. Bob Holden praised the cooperative efforts that led to a new partnership between the state of Missouri, the city of Hazelwood and St. Louis County to provide the necessary incentives to allow the Ford Motor Company to continue operation of the Ford Hazelwood Plant through 2007, according to a Sept. 29 news release.

Speaking at a news conference to announce details of the partnership, Holden said, Given the current economic conditions and without this new contract between the UAW and Ford and incentive package offered by state and local governments, I am convinced we would have seen a complete closing of this facility by the end of next year.

I am pleased that our efforts to this point have been successful in retaining this important operation and that jobs will be saved. And as the economy improves and new product lines can be pursued for the plant, we believe Hazelwood will continue to be a part of Fords future and Missouris future for many years to come.

Holden said the states share of the incentive package, which includes approximately $5 million in job training assistance and $4 million of other tax credits, was negotiated over a two-day period in St. Louis following the successful negotiations between the United Auto Workers and Ford Motor Company on a tentative contract.

Hazelwood and St. Louis County also are providing tax abatements to help with financing upgrades at the plant.

But Holden stressed the most important negotiating tool they had to offer Ford was the workers at the Hazelwood facility.

We had no greater resource to offer the company than our world-class workers. Workers have been doing their part and I wanted to make certain we were doing all we could to back them up, Holden said. Without the quality of this work force, we would not have been able to save this plant.

Holden also credited the leadership of the Ford Hazelwood Task Force he appointed last year and headed by Chuck Mueller, chairman and CEO of Ameren, as well as the General Assembly for their work to support efforts to keep the plant open.

Holden also announced that he would soon appoint a Missouri Automotive Partnership with the goal of retaining the five assembly plants, dozens of auto suppliers, and thousands of autoworkers in Missouri.

The important role the auto industry plays in this state cannot be overestimated. We must work together as a state to do all we can to support this industry in Missouri and keep it competitive, Holden said.

Currently there are two Ford plants in Missouri, located in Hazelwood and near Kansas City, two Daimler Chrysler plants at Fenton, and a General Motors plant in Wentzville. There are also at least 51 first tier parts manufacturers that are impacted by the same market conditions that affect assembly plants.