Ford Makes $3.7 Billion Investment in Electric Vehicle Manufacturing in Midwest
Ford Motor Co
Ford has announced an investment of $3.7 billion and the creation of over 6,200 United Auto Workers union jobs in the Midwest as part of its plans to increase electric vehicle production capacity.
In November, the automaker announced ambitions to produce 600,000 electric vehicles per year by the end of 2023 and 2 million per year by 2026 in an attempt to catch up to EV leader Tesla. Ford also invested $11 billion in battery factories in Tennessee and Kentucky last fall.
Ford plans to spend $2 billion on three plants in Michigan, another $1.5 billion on three factories in Ohio, and $95 million on a plant in Missouri as part of its significant investment in domestic manufacturing.
According to Kumar Galhotra, president of Ford's internal combustion engine division, Ford will receive $200 million in economic incentives from Ohio and another $150 million from Michigan.
According to reports, US states and municipal governments have given over $5 billion to automakers researching electric vehicles since 2002.
The Michigan facilities will build the F-150 Lightning truck, which has a three-year waitlist; the Missouri plants will build an electric van, and the Ohio plants will support the assembly of a yet-to-be-announced new EV that will appear by mid-decade.
Ford claims it will transfer another 3,000 part-time workers into full-time union positions, besides the 6,200 new jobs.
A further $1 billion will be spent to improve working conditions at the company's factories, including healthier cafeteria alternatives and better parking lot illumination.
Source: Nasdaq
