Ford Motor Co. will invest $1.2 billion by opening new facilitates in three Detroit counties – a win for President Trump, who has been working on this deal for some time. The company will bring jobs and economic revival to the areas once destroyed by economic crisis.
The company is preparing production for some new American cars, the all-new Ford Ranger and Bronco, and luckily decided to invest this money in the American economy.
Ford announced Monday that they will invest $850 million to retool its Michigan Assembly Plant in Wayne for truck and SUV production; $150 million in its Romeo Engine Plant to expand capacity for several vehicles; and $200 million to build a data center at the company’s Flat Rock Assembly Plant.
Detroit News reports:
Ford Motor Co. will invest $1.2 billion in three Michigan facilities to prepare for production of the all-new Ford Ranger and Bronco, and to support the company’s expansion into mobility.
The company said Tuesday it will invest $850 million to retool its Michigan Assembly Plant in Wayne for truck and SUV production; $150 million in its Romeo Engine Plant to expand capacity for several vehicles; and $200 million to build a data center at the company’s Flat Rock Assembly Plant. Ford announced in January the Flat Rock facility also would see a $700 million investment and 700 new jobs to support the production of electrified and autonomous vehicles.
The total investment represents an additional $350 million above those negotiated as part of the 2015 United Auto Workers contract. Plans for the data center at Flat Rock are new; the company added $150 million to its budget for Michigan Assembly upgrades. The $150 million for the Romeo plant upgrades were previously outlined in the UAW contract. According to the contract, the automaker will invest at least $9 billion in U.S. facilities through 2019.
The investments announced Tuesday are expected to add or retain 130 jobs at the Romeo Engine plant; Ford did not offer employment estimates for Michigan Assembly or Flat Rock.
Joe Hinrichs, Ford president of the Americas, said a portion of the investments announced Tuesday — and those announced in January — add money that was not part of the company’s plans during the 2015 negotiations. The company has been planning some of the investments for “quite some time,” he said.
“It’s a mixed bag here for what’s new,” Hinrichs said. “We think we’re well-positioned… We’re very excited about the future.”
Tuesday’s announcement came as President Donald Trump has pushed U.S. and foreign automakers to build factories and add jobs in the U.S. Ford has announced $1.9 billion in investments in Michigan in the past three months, though roughly half of that amount has been planned since 2015.
“Big announcement by Ford today,” the president tweeted Tuesday morning. “Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”
Hinrichs said the company is encouraged by the president’s economic agenda.
The Michigan Strategic Fund board on Tuesday approved a $10 million performance-based grant for Ford to be used toward its work on the Flat Rock facilities. The fund is a semi-public state board that’s part of the Michigan Economic Development Corp.
The investments are big, Steve Arwood, CEO of the MEDC, told The Detroit News. “That probably nets out to be the biggest day ever in Michigan,” he said. “That’s all good news. There’s not a discouraging word.”
U.S. Congresswoman Debbie Dingell in a statement said Tuesday’s announcement is evidence of Ford’s commitment to the U.S. and Michigan. “…These investments bolster the company’s dedication to building its highest-tech vehicles here in the U.S. and strengthen its commitment to American workers, who are the best in the world,” she said in a statement.