Ford Motor Co. (F) plans to eliminate second production shifts at its Flat Rock, Michigan plant in July this year, downsizing 900 workers. The plant, called Auto Alliance, is jointly operated with Japan’s Mazda Motor Corp. It manufactures Ford Mustang and the Mazda 6 sedans. Last year, demand for both these models fell significantly (Mustang – 27%, Mazda 6 – 34%).

The current 2,300 workers at the Flat Rock plant produced about 102,000 vehicles in 2009. The workers, represented by the United Auto Workers union at the plant, will be offered work at other Ford plants. The rest of the workers will be offered buyouts under the terms of the automaker’s contract with the union.

Nationwide, Ford has around 600 workers on indefinite layoff. Those workers and the ones to be laid off at Flat Rock will have the first opportunity to take jobs at facilities that are hiring.

In fact, most of the laid-off workers are expected to get jobs at other plants. Last month, the automaker announced that it will hire 1,200 workers at its Chicago Assembly Plant to build the new Ford Explorer at the end of this year. The company will also create 1,000 jobs in Michigan to make electric car batteries.

In 1979, Ford acquired a 33.4% stake in Mazda. Post-acquisition, the former began selling the latter’s Familia and Capella as Ford Laser and Telstar. In November 2008, Ford reduced its controlling interest in Mazda to a non-controlling interest of 13.4%.

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