Gov. Jim McGreevey, less than two weeks into his new administration, has already made the trek to Detroit to start the process. Meeting with Ford officials last week, McGreevey offered tax incentives and other potential benefits aimed at giving the automaker the means to retool and modernize the plant. The specifics of what McGreevey had to offer were not disclosed.
The key reason the Edison plant is on the to-close list is that it turns out Ford Ranger trucks, and Ford is dropping the line entirely. A 2004 closing of the plant is projected, but McGreevey's aim, according to officials, is to make it cost-effective for Ford to change over to other models on the site. The cost of retooling has been pegged in the range of a couple of million dollars.
Gov. McGreevey did admit to reporters when he returned from his Detroit foray that it's an uphill battle at best. "We have begun and will continue a dialogue on what can be done to increase the competitiveness of the site," he told reporters. "We also want to focus on New Jersey's strategic location as an issue."
A couple of other issues did arise during the trip to Michigan, among them the fact that Ford would have to remediate the Edison plant site if it is in fact closed. "That can be extremely expensive in New Jersey, as several other companies have found out," according to one state official.
An issue raised by Ford, according to one state official, was the cost of shipping parts to its Edison facility. According to company estimates, the cost of shipping manufactured parts to New Jersey for final assembly is about 60% higher per car than it is for plants located closer to Ford's Michigan home base.
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