John Deere Starts Moving Production From Waterloo To Mexico
The company sent out an email to Waterloo employees announcing it is moving the “production of all cabs, welding, and assembly, for current and future products” to Mexico.
The move comes as John Deere plans to bring new product programs to its Waterloo operation. In order to do this, they need to consolidate its manufacturing of cabs from the Tractor and Cab Assembly Operations in Waterloo to Ramos Component Works in Mexico said a spokesperson for Deere in a KWWL report.
The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products.
The company sent out the announcement to prepare employees for upcoming product programs.
Tim Frickson, the UAW Local 838 had not yet talked to John Deere says KWWL, but says from his understanding, there are currently no planned layoffs at the facility.
There are approximately 1,100 people working at the facility and there is talk the company may start a new build at the facility.
However, Deere says "The number of employees affected will depend on where the business is with respect to production volumes, employee attrition over the next two years, and new product program needs."
According to KCRG, John Deere will be evaluating how the move is going to affect staffing levels over the next 18 months.
The cab production move will happen in phases over a period of time and is expected to be completed by the end of the 2024 fiscal year.