UAW awaits response to ‘green’ vehicle proposal

ST. PAUL ? United Auto Workers Local 879 awaits a response from Ford Motor Company to its proposal to make the St. Paul manufacturing plant a leader in producing more fuel-efficient, “green” vehicles.

The union submitted the proposal two weeks ago, shortly before the automaker announced the first stages of a restructuring plan involving several facility shutdowns and the layoffs of some 30,000 workers. The St. Paul plant was not among those identified to be closed, but its future remains uncertain. For that reason, the union is promoting a “sustainable re-industrialization model” that would put the plant on the forefront of new, clean technologies.

“We think that this is the place to be making an E85 vehicle, a biodiesel vehicle or a hybrid vehicle,” said Local 879 President Rob McKenzie.

Production of a “green” vehicle would require an investment of $500 to $750 million and 18 to 24 months to retool the plant, he said.

The proposal outlines several reasons that Ford should locate such a facility in St. Paul, including Minnesota’s commitment to the environment, the plant’s quality workforce and its unique access to clean, hydroelectric power.

Here is the complete text of the proposal Local 879 sent to Ford. You can also download it as a pdf file.

Green Plant, Green Corporation, Green State- Just Add Green Products
Ford Twin Cities Assembly Plant- Sustainable Re-Industrialization Model

From a carbon management viewpoint, Ford’s Ranger Plant in St. Paul is already well aligned with Ford’s green strategy as well as Minnesota’s environmental leadership. With the addition of a new line of greener vehicles to assemble, Twin Cities Assembly Plant (TCAP) could become both Ford’s and Minnesota’s contribution to a global model of sustainable re-industrialization.

Ford Motor Company?s ?Business Impact of Climate Change? released December 2005 represents a clear shift by a global manufacturer to embrace the centrality of carbon management. Ford?s report reflects fossil fuel?s role in creating a suite of related issues that are already shaping our decisions at a personal, corporate, and global geo-political level. Climate change, air and water quality, energy dependence and security have fast become the central determinants facing society at every level on a global scale. Ford CEO, Bill Ford, made Ford?s shift to carbon management clear in his six-point plan for US re-industrialization based solely on sustainability in his November address to the National Press Club. While Ford Motor Company will strengthen its carbon management leadership by setting more detailed improvement metrics; its core placement of this set of issues is critically important. Ford’s soon to be announced re-structuring will likely embody reshaping the corporation’s growth on an energy sustainable platform.

Realignment by Ford to launch new products and retool plants, prioritize financial resources, and close plants must be linked to achieving significant staged reductions to its carbon footprint in the auto industry. Its just good business, even in the short term, to opt for plants, processes and products that reduce carbon. More capital will flow from less carbon. To this end, Ford Motor Company has already invested heavily in hydrogen technology, clean power, and bio-based parts and fuels (ethanol and bio-diesel) even before the US market began shifting dollars to sustainability.

Investing in sustainable manufacturing is part of Ford?s legacy; Ford built the hydroelectric facility at Lock and Dam #1 on the Mississippi River in 1924 to support manufacturing automobiles at Twin Cities Assembly Plant (TCAP). Since then the hydro has produced enough clean energy to power TCAP and create significant revenue from the unused portion. 101,000,000 KWH of electricity is produced yearly from TCAP?s hydro maximum rated at 18 MWH. The same amount of energy from coal fire generators forever depletes 50,510 tons of coal while emitting 196 million pounds of greenhouse gas CO2. Instead, four turbines convert flowing river into the clean power that enables a heavy manufacturing operation to sit in the middle of a National Parks Corridor. Though truly remarkable, its just part of TCAP?s potential to further reduce the manufacturing carbon footprint.

There are many elements in the manufacturing carbon footprint. In the auto industry this carbon footprint, often referred to as “Wells to Wheels”, is comprised of two key components: plants and products. The greening of plants’ power generation is so daunting that sustainable manufacturing is seen as one or the other, not both. There is only one other auto manufacturing facility in the WORLD powered exclusively by non-carbon energy-Ford’s UK Dagenham diesel engine plant. Two points are worth noting here. First green products at TCAP would create a powerful global model-green plant ?green products at a one-plant site. But even more TCAP produces enough additional clean energy to power a Dagenham sized engine or stamping plant and a small parts plant on or near TCAP that would blend equally well into the system of parks and residential communities that distinguish St. Paul and Minneapolis as truly livable urban centers. Second, wouldn’t a sizeable and growing percent of the US market see the value of new green products from a plant still growing its 80 year green legacy? A story of legacy and innovation.

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Driving innovation into practice, Twin Cities Ford is recognized for its lean flexible workforce utilization. Ford and the UAW local union have crafted a one of its kind contract incorporating two important features. The innovative contract puts 40 hours of production into just four days and a flexible production process helps insure production flow and full plant utilization. The unique 4-day work schedule has a major impact on TCAP’s energy use. First, it allows a full day of previously used clean energy to be put back into the grid and second, this further reduces TCAP?s process emission already maintained at 50% of the MPCA?s permitted level enabling both overall capacity and daily production flexibility. Not to mention, from an eco-driving standpoint, 2,000 employees save fuel from a round trip commute to work. Just as a hybrid engine represents combined very clean burn and efficiency, TCAP brings efficiency and clean power together at a manufacturing operations level. And just as the hybrids create a quality environment so too has TCAP’s unique flexible, negotiated assembly process. JD Power quality ratings rank Ranger the #1 small pick-up ahead of Toyota and Honda, TCAP the #1 Ford assembly plant and #8 assembly plant in all North and South America among ALL auto makers.

Developing green products to build on TCAP’s hybrid operations platform is practicable for Ford and Minnesota. The potential products picture involves several elements beginning with the use of engines Ford is already producing that are fuel-efficient, clean advanced gas and diesel engines, both capable of using bio-fuels. In the short term, TCAP could return to building flex-fuel 3.0L Rangers given the competitive price of E85 or mid term, develop capabilities to build with the new 6 cylinder gas engines (3.5L or 4.0L) that are fuel efficient, meet strict emission standards and are flex fueled (E85, ethanol-gas). Ford also has an advanced clean diesel 2.5L 4-cylinder engine (From Ford’s wind powered UK plant) built into Rangers for virtually every market worldwide except the US or a similar clean 2.0L diesel that could be built into an updated Bronco that is still on the table for pro- duction. Both clean diesels are bio-diesel adaptable, appealing to a pick-up niche further boosted by mandated low-sulfur diesel at comparatively improved cost.

Building the crew cab Ranger or Ford?s new Sport Trak at TCAP could be accomplished reasonably by complementing the flex weld tooling already building durable Mazda and Ranger pick-up models. Perhaps bio-parts, already production capable, would add further flexibility and value to new green products at TCAP. Could Ford pull all the pieces together for a green products line keyed to flex fuel and clean diesel retaining the Ranger’s smaller vehicle character in 1 and ? to 2 years? If it can, Ford will have created a path forward for sustainable manufacturing by connecting to a significant and growing portion of the US market able to see in the green?green label at least much better fuel efficiency or even the reason to buy a TCAP Ford over any other product. Minnesota?s timely align- ment would clearly impact the creation of this green plant?green product global model.

Many sectors of Minnesota’s economy would benefit if the state can facilitate further greening of TC Ford. Already a national force in renewable fuel, Minnesota is arguably the national leader in the research, production and distribution of bio-fuels due largely to the links already built between Minnesota?s universities, the state and the private sector. Researchers at Minnesota universities have partnered with the state and private sector, for example, to speed the use of renewable fuels in hydrogen technology. Collaboration between Minnesota and Ford with an established and growing investment in all these areas would benefit both. The possibilities are numerous and exciting and would truly grow an existing Minnesota/Ford partnership that built and currently runs an on site re-training facility for both the community and Ford employees.

As for the future of renewable fuels, Ford has already launched a program to grow the renewable fuels infrastructure. In the current dialogue already initiated by the state, perhaps Ford can agree to a targeted Minnesota program while the state agrees to incentives for green jobs creating flex-fuel and bio-diesel products at TCAP. Collaboration with Ford may also involve Minnesota’s move to incentivise bio-fuels and products using them and measures that move the fossil fuel market to reflect its true carbon cost to our economy. A state developed compliance framework for both renewable energy certificates and emissions trading would also accelerate development of renewable energy generation like wind, solar and biomass and growth of even more green manufacturing jobs.

Fostering such a state/corporate collaboration with carbon management at its core would be unique in the US. Somewhat to our North, however, the Canadian province of Ontario has over the last couple of years pursued an industrial policy linking sizeable retooling incentives to Ford and other manufacturer’s investments in sustainable processes and products. In this regard, Ontario has benefited greatly by the fact that Canada’s universal health coverage creates a 6% cost advantage over US manufacturing. Countries like the UK and Japan have for many years keyed their industrial incentive policies to significant carbon reduction. Whether its Bill Ford’s 6-point program or a similar program proposed in the Apollo Energy Act (Rep. Inslee) supported by the UAW, the track for re-industrializing America away from catastrophic climate change and oil dependence is clear. Seminal research by the the University of Michigan showing the cost effectiveness of sustainable re-industrialization supports both programs as well as recent US legislation introduced by Sen. Obama. A TCAP green model fits both state and national emerging energy agendas.

It’s time. The alignments are there. Green plant, green state partnered with a green corporation. Add green products to Twin Cities Assembly Plant, and the resulting synergy will create a much-needed model for sustainable US manufacturing.

Responses Invited:
Jim Eagle, Building Chairman, UAW Local 879 and Bargaining Committee; Rob McKenzie, President; or preparer Lynn Hinkle, Health and Safety

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