Ford to inject $3.7 billion for the production of electric and gasoline vehicles

Ford Motor Co said Thursday it will invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri to produce electric and gasoline-powered vehicles.

Ford said $2.3 billion of the total investment will go into electric vehicles, part of the $50 billion in electric vehicle spending through 2026, as previously reported.

Ford officials said the company would receive incentive packages of about $150 million and about $200 million from Michigan and Ohio, respectively.

As part of the investments, the Michigan-based automaker said it will add more than 6,200 hourly jobs and convert 3,000 temporary workers into full-time employees who will receive health care benefits and higher pay. . It will also add a new electric utility vehicle to its lineup mid-decade.

Ford said in March it was increasing spending on electric vehicles to $50 billion through 2026, from $30 billion previously. It also said it would run its electric vehicle and internal combustion engine (ICE) businesses as separate units in a bid to nab electric vehicle industry leader Tesla.

The company said it plans to build more than 2 million electric vehicles a year globally by the end of 2026, about a third of its global output.

US President Joe Biden issued an executive order in August setting a goal for automakers to sell 50% of new vehicles by 2030 as electric or plug-in hybrid models.

White House Deputy National Climate Advisor Ali Zaidi said after the announcement of Ford’s investment, “The US auto sector is accelerating in the direction of the goal set by President Biden.”

Ford said Thursday it would invest $2 billion in three Michigan plants to increase production of the new F-150 Lightning pickup truck to 150,000 – a move it previously outlined in April – as well as build new petrol versions of the Ranger pickup. and Mustang sports car. New jobs in the state will total 3,200.

The company’s operations in Ohio will see $1.6 billion in investment and the creation of nearly 1,900 jobs, including the new utility vehicle. The company did not provide details on the vehicle that will be built in Avon Lake, but Auto Forecast Solutions said it will be the next generation of the e-Transit minivan, starting in 2026.

About $100 million will be spent in Missouri to add 1,100 workers for a third shift at an assembly plant outside Kansas City to boost production of electric and gas-powered Transit vans, said Ford.

At the end of 2021, Ford employed approximately 56,000 American hourly workers. They are represented by the United Auto Workers union, with which Ford will negotiate a new labor agreement next year.

Ford also said $1 billion of Thursday’s total will be spent over the next five years to “improve work environments” at factories, including providing better access to healthy food, installing chargers for electric vehicles in the car parks and by improving the security and lighting of the plant car parks. .

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