Ford Considers Making Some Parts Overseas

Ford Motor Co. may move some parts-making operations overseas unless the government agrees to lower car fuel economy standards, a senior Ford executive said today.

Louis Ross, executive vice president for the company’s North American car and truck operations, said the decision to move would come by the end of the year unless so-called corporate average fuel economy requirements were lowered for cars built in the United States.

“It will come up (before Ford executives) in September,” Ross told a press conference. “It seems to be the most efficient way to meet the standards.”

Ford and General Motors have acknowledged that they will not meet the government-mandated 27.5-miles-per-gallon fleet average for their domestic-built cars this year.

Companies that miss the standards face heavy fines unless they use credits for exceeding the standards in previous years.

Ross said Ford might turn to Mexico and other foreign sources for up to 30% of the content of its Ford Crown Victoria and Mercury Grand Marquis large cars. He said other large cars, such as the Lincoln Town Car and Continental models, could be included later in the foreign scheme.

Federal authorities have proposed a one-year relaxation of the standards in response to petitions from Ford and GM, but Ford has said it wants long-term relief to aid in its business planning.