Is Ford Wasting $200 Million?
Despite some criticism on the technology, Ford (NYSE:F) is pursuing increased manufacturing of its turbocharged engines, which it dubs EcoBoost, and will be ramping up production in Ohio.
Currently, Ford’s Cleveland, Ohio, factory produces the 3.5-liter version of its turbocharged engine, but not the 2.0-liter version, which is manufactured in Spain for North America and Europe. As demand for fuel-efficient cars rises and the EcoBoost engines stands to fill that demand, Ford plans to spend nearly $200 million on getting the Cleveland factory producing the 2.o-liter engines as well.
Ford wants to increase the production of these engines and will be adding jobs to the Cleveland factory. The one in Spain will remain open and continue making the engine for Europe with little change in employment. Unfortunately, turbocharged engines are not a new technology and may quickly become a thing of the past…