Ford Awards Contract to New Minority Supplier For Chassis
24 November 1998
Ford Awards Contract to New Minority Supplier For Chassis in Renaissance Zone, Creating 120 JobsDEARBORN, Mich., Nov. 24 -- Ford Motor Company led the way in helping to form a new minority-controlled joint venture that will assemble recreational vehicle chassis in the Renaissance Zone in Detroit, initially creating up to 120 jobs. Ford awarded a contract to TruMack Assembly to assemble a complete chassis -- frame, suspension, motor, transmission, and wheels and tires -- from components supplied by Ford and other companies. The joint venture will ship the chassis to motorhome manufacturers in Indiana, Ohio, Pennsylvania, California, other states and Canada. TruMack Assembly is a joint venture between Trumark Inc., a Lansing, Mich.-based minority-owned supplier of automotive stampings and assemblies and distributor of steel, and Mackie Automotive Systems, an Oshawa, Canada-based company that is the leading international supplier of "Tier Zero" sequencing, subassembly and logistical support systems for the automotive industry. The contract reaffirms Ford's strong commitment to projects in the state- designated Renaissance Zone that will increase jobs and initiate development for Detroit. It also reflects the strength of Ford's industry-leading minority supplier development program and the dedicated teamwork of the two joint venture companies. "This deal has several benefits," said Carlos Mazzorin, Ford Group Vice President of Purchasing and Ford of Mexico, "added jobs, increased investment, more job training, and a stronger minority supplier. It also reflects Ford's commitment to Detroit and Michigan. With additional potential work, nearly 350 jobs could eventually be created." The chassis had been made by Industries Metalicas Monterrey S.A. (IMMSA) in Monterrey, Mexico. The transportation cost advantage of locating the business nearer to the product's final manufacturing destination and opportunities related to participation in the Renaissance Zone drove the decision to create this business partnership in Detroit. IMMSA will continue making the chassis until TruMack begins operations. Ford and IMMSA are discussing other potential business. A 210,000-square-foot building will be constructed on a 32-acre site on Lynch Road to house assembly of the chassis. Ford Motor Land Development Corporation is negotiating to buy the land and will oversee development. The facility is expected to be operating late next year. "We successfully met the challenge posed by formidable competitors and we brought this project to Detroit through the collective effort and support of the City of Detroit, the Detroit Economic Growth Corporation and the Michigan Jobs Commission," said Michael Guthrie, president of TruMack. "This venture is the culmination of true public-private and OEM partnership and we all benefit." "Community involvement and investment are integral components of our corporate mission" said Carlton Guthrie, chairman of TruMack. "We will continue the activities for which Trumark and the Guthries are known in the Lansing area and we pledge that TruMack will bring the same leadership to our new community." "By bringing this new rolling chassis assembly capability to Detroit, we are in a great position to show the world that this community remains a leader in manufacturing processes," said F. Alan Smith, chairman of Mackie. "As the motorhome chassis market continues to expand, Ford will have the right product to meet the many diversified needs of motorhome builders." The state is providing about $8 million in Michigan Economic Growth Authority credits. The City of Detroit is considering more than $1 million in tax abatements. The Super Duty F-Series chassis will support Class A motorhomes with three gross vehicle weight ratings: 15,700, 18,000 and 20,500 pounds. Class A motor homes are the largest of recreational vehicles. Ford holds nearly half of the market for motorhome chassis. Ford also makes chassis for smaller recreational vehicles -- Class C motorhomes -- built on van cutaway chassis. The Ford Econoline van cutaway is the leading chassis for Class C applications. At the start of production, about 100 of the employees will be hourly and 20 salaried. They will receive assessment and training from Focus: HOPE and other providers. This is the fourth program Ford has helped lead within a year to attract business to Detroit, adding more than 350 new jobs. In December, Ford chose Renaissance Global Logistics (RGL) to assemble vehicle kits for overseas markets. RGL is owned by the O-J Group, a minority-owned transportation company. In addition, Lear Corp. and Bing Manufacturing Inc. formed a minority-owned joint venture -- Detroit Automotive Interiors -- to make seats for the Explorer. Last week, TRW Inc. and Mexican Industries announced a joint venture to make side impact air bags for several future Ford vehicles.