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Ford is shelving plans to build a new assembly plant in northernMexico. Instead, Ford has promised the United Auto Workers in its new labor pact to build a small car in the U.S. Pushing both Ford and GM to build small and alternate fuel vehicles in plants staffed by union members was one of the top goals of UAW President Ron Gettelfinger in the recent contract negotiations. Gettelfinger had warned in speech to the Detroit Economic Club that small car production was in danger of leaving the U.S. altogether in the next few years. Under the new agreement with the UAW, which was ratified last week by union members at Ford, the company has agreed to keep open five plants, including assembly plants in Louisville, Ky., and Wayne, Mich. The Wayne plant now builds the Ford Focus and will be retooled for the replacement for the Focus, which is now in the company's new product pipeline. Ford also agreed to extend for another year, until 2009, the life of the assembly plant in St. Paul, Minn.,...
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