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NewsJanuary 23, 2006

ST. LOUIS -- Ford Motor Co. is expected to unveil a massive restructuring plan today that could close the company's factory in Hazelwood, cutting some 1,400 jobs. The odds for Hazelwood aren't considered good because Ford almost closed the suburban St. Louis plant three years ago...

The Associated Press

ST. LOUIS -- Ford Motor Co. is expected to unveil a massive restructuring plan today that could close the company's factory in Hazelwood, cutting some 1,400 jobs.

The odds for Hazelwood aren't considered good because Ford almost closed the suburban St. Louis plant three years ago.

"St. Louis kind of skated by here a couple of years ago, but this time I think they'll be caught," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich.

The Wall Street Journal reported Thursday that Ford plans to close 10 plants and lay off 25,000 hourly workers. The company refused to outline its plan before officially announcing it today.

The Hazelwood plant is ripe for closing because it makes the Ford Explorer SUV, a product that has seen its customer base drop dramatically, Cole said. Another Ford plant in Louisville, Ky., also makes the Explorer and will likely remain open because it's newer than Hazelwood, Cole said.

Missouri officials have been asking Ford to reconsider any plans to shutter the factory.

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Gov. Matt Blunt, Hazelwood Mayor T.R. Carr and St. Louis County Executive Charlie Dooley flew to Ford's headquarters in Dearborn, Mich., this month to ask the company to spare the plant.

Carr said after the trip that group presented a number of options to Ford, such as using the plant to build next-generation hybrid cars or turning it into a "flex-plant" that could build different cars as needed. The proposals also included incentive plans based on Ford's investment, he said.

Cole said it's unlikely Ford would make big investments now to retool plants because the company has limited money to spend.

"I think Ford views this as 'change or die,' frankly. It's a very serious effort," Cole said.

Carr would not speak to the media late last week. His spokeswoman Emily McFarland said Carr would hold a news conference in Hazelwood Monday morning after Ford unveiled its plan.

Carr said the stakes of Ford's decisions are high for Hazelwood, which depends on a heavy manufacturing base for many high-paying jobs. The average autoworker there earns nearly $65,000 with overtime. The average Missourian earns about half that.

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