Ford Investing $1.45 Billion In Michigan Plants: Details About The Initiative

By Amit Chowdhry ● Dec 19, 2019
  • Ford Motor Company announced it will be investing $1.45 billion in two plants in Michigan while creating 3,000 jobs

Ford Motor Company recently announced that it will be adding 3,000 new jobs at two factories near Detroit. And the automaker will also invest $1.45 billion in those plans to build SUVs, trucks, electric vehicles, and self-driving vehicles. The hiring will start next year.

Ford is specifically investing $750 million in a factory based out of Wayne, Michigan. And 2,700 jobs will be added over the next 3 years for building Ranger mid-size pickup trucks along with a revamped Bronco sports utility vehicle to be released next year. Plus that facility will also have a new modification center to start rolling out Ford’s first autonomous vehicles in 2021.

Plus Ford is also spending $700 million on the full-size pickup truck plant in Dearborn, Michigan (known as the Rouge manufacturing complex). This includes hybrid and electric versions of the truck. And Ford will be adding 300 jobs at the plant. The Ford F-150 is the top-selling vehicle in the U.S. and generates most of Ford’s profits.

“Ford is proud to be America’s number one producer of vehicles and the largest employer of UAW-represented autoworkers,” said Ford president of Automotive Joe Hinrichs. “We appreciate the strong support from the State of Michigan and our local government partners as we continue to invest in our operations and people in Michigan.”

The investment in the plants was part of the negotiations that took place between Ford and the United Auto Workers union. And Ford said that this move will help solidify its position as one of the top producers of vehicles in America and as the largest employer of UAW-represented workers.

“The UAW is proud of Ford’s commitment to manufacturing in the United States and in Michigan,” explained UAW President Rory Gamble. “This is a direct result of the 2019 collective bargaining process, providing additional jobs – and job security – for UAW members in Southeast Michigan.”

The Michigan Strategic Fund — which is the economic development arm of Michigan — has approved of tax incentives for Ford worth up to approximately $35 million.

At the Dearborn facility, Ford is also going to establish a new battery operation where workers will assemble battery cells into battery backs for the F-150 hybrid and F-150 battery electric vehicles.

“This is great news for Michigan auto workers, their families, and our economy as a whole,” commented Michigan Governor Gretchen Whitmer. “I’m glad Ford recognizes that Michigan is home to some of the most innovative, hardworking people in the world, and has opened up opportunities for 3,000 new good-paying jobs in our state. Today’s announcement proves that in Michigan, the state that put the world on wheels, we’re ready to build, test, and deploy the cars of the future. Let’s get to work.”

Michigan Economic Development Corporation CEO Jeff Mason pointed out that Ford’s decision to expand in Michigan is going to have a far-reaching impact on the entire state. And estimates from the Center for Automotive Research shows every job in an automotive assembly plant has a multiplier of eight jobs throughout the supply chain.

“This is a project that will provide substantial opportunities to Tier 1 suppliers, the Tier 1 supply base, and communities around the state, and will lead to further growth in our automotive and manufacturing sector throughout Michigan,” noted Mason. “We are proud to be able to support this type of transformational investment in our state and further solidify Michigan’s position as the global leader of automotive innovation. Ford has demonstrated a strong commitment to Michigan, and we look forward to working with them on the continued impact these expansions will have throughout our state.”

Michigan was selected for the expansions over competing sites in Kentucky, Missouri, and Ohio along with locations in Canada, Mexico, and outside of North America.

“Today’s announcement not only expands jobs in Michigan, it also helps to illustrates how collaboration between workforce and economic development creates pathways to good-paying jobs,” added Jeff Donofrio, Director of the Michigan Department of Labor and Economic Opportunity.

Some of the other major projects that Ford is focused on in Michigan include the $740 million investment for transforming the historic Michigan Central Station and several adjacent properties in Detroit’s Corktown neighborhood into an innovation hub. And Ford also reconfirmed its commitment to keeping its headquarters in Michigan with plans of a reimagined and redesigned Dearborn campus — which is also going to result in significant investment and economic development for the region. In the past 13 months, Ford also committed to invest $2.2 billion in the state of Michigan and create nearly 8,000 high-wage jobs.