Ford reveals plan to invest $1.2 billion in MI plants

The work to transform the Michigan Assembly Plant in Wayne, Mich., begins in May 2018.

Ford also says it plans to create or retain 130 jobs and invest $150 million to expand capacity for engine components for several vehicles, including Ranger and Bronco, at the Romeo Engine Plant in MI.

And $200 million be spent on a data center in Flat Rock for vehicle connectivity and developments in driverless vehicles.

A company spokesman told The Blade no new jobs would be created at Flat Rock, which is about 45 miles north of Toledo and draws workers from the Toledo area.

President Trump – at the time still more than two weeks from being sworn in – took credit for the investment, citing his tough stance on Detroit’s moving cars to Mexico.

But the announcement is believed to be connected in part to its recent decision to revive the Ford Bronco sport-utility vehicle and Ford Ranger mid-size pickup truck.

Asked if the UAW, rather than Trump, deserves credit for the investments and jobs, Hinrichs simply said, “I am just laying out the timeline”.

The factory had been producing a mix of small cars, including the Ford Focus, which will now be moved to a plant in Mexico. Meanwhile, New York Times correspondent Binyamin Appelbaum mocked Trump by writing that the president’s tweet contained “three more exclamation points … than the number of new jobs that Ford created today”.

Hinrichs said Tuesday’s announcement was timed to a state meeting where officials approved almost $31 million in grants and 15-year tax exemptions for Ford. Roughly $350 million of that total investment represents new money, but Ford is expected to “add or retain” only 130 jobs – a marginal amount compared to the 201,000 people the company employs worldwide.

In January, Ford scrapped plans to build a $1.6 billion factory in Mexico and instead added 700 jobs in MI. He called it an example of auto companies “coming back to U.S”.

These investments follow a $700 million commitment, announced earlier this year, to add production tooling for upcoming Ford electric and autonomous vehicles at Ford’s Flat Rock Assembly plant.

Ford said last week that it expected higher investments, as well as other spending, to drag on 2017 earnings.

“From this point forward the comparisons will be more in line with what we saw past year”, Shanks said.

US auto companies, however, are continuing to move small vehicle production to foreign markets.

Ford is on Tuesday’s Michigan Strategic Fund meeting agenda for business growth and investments, and likely will receive state incentives. “We’re proud of fact that we make more vehicles in USA than anyone else”.

In late trading Tuesday, Ford shares were up 2.1 percent at US$11.69.