Ford Might Build New Vehicle in Chicago

Ford Motor Co. might build a new type of minivan for Mercury and Volvo in its Chicago assembly plant in about three years, part of a plan that could create thousands of area jobs, people familiar with the plan said. The jobs would come from a business park for suppliers that the world’s second-largest auto maker wants to build in a vacant field next to its 2,500-worker plant in southeastern Chicago, the sources said. Ford now builds Ford Taurus and Mercury Sable sedans at the factory, as well as in Atlanta. Ford would consolidate Taurus production in Atlanta, and the Chicago plant would build Mercury and Volvo “tall wagons”--a cross between minivans and station wagons that would have higher profit margins. To save costs, the vehicles would be derived from parts that Volvo engineered for a redesigned S80 sedan before Ford bought Volvo’s car operations in January. Ford is struggling to meet cost targets and may yet revise its plans for Chicago. Della DiPietro, a Ford spokeswoman, declined to comment. None of the people familiar with the plans would comment on the costs of the land and other investments Ford is considering. Union officials didn’t return phone calls seeking comment.

When they purchased Volvo’s car operations for $6.45 billion in January, Ford officials praised Volvo’s ability to engineer a variety of vehicles from the same powertrain and chassis components. By basing the new tall wagons for Mercury and Volvo on the S80 platform, Ford would have a cost-effective way of differentiating the brands from other products. Mercury sold 410,186 vehicles in 1998, down from 474,673 in 1989. Consumers are attracted to Mercury because they like individual models, not because of loyalty to the brand, Ford Chief Executive Jac Nasser said in a recent interview. “That’s a good reason to strengthen the Mercury identity,” he said.