by Scott McClallen
Ford Motor Company says it will spend $3.7 billion across three Midwestern states to create more than 6,200 new union jobs.
The United Auto Workers and Ford say they will convert nearly 3,000 temporary UAW-Ford workers to permanent full-time status and provide all hourly employees healthcare benefits on the first day at work.
Michigan will be the recipient of a $2 billion investment and creation of 3,200 union jobs across three plants expected to produce 150,000 new F-150 Lightning electric trucks annually. Ford plans to produce a new Ranger pickup at Michigan Assembly Plant in Wayne, a new Mustang coupe at Flat Rock Assembly Plant, and spend $35 million to build a new Ford Customer Service Division packaging facility in Monroe that will create more than 600 union jobs. The packaging facility is expected to begin in 2024 to accelerate parts shipments.
Taxpayers will pay more than $134 million for the plants after the the Michigan Strategic Fund approved $100.8 million for a Critical Industry Program (CIP) through Strategic Outreach and Attraction Reserve Fund (SOAR) and $34 million for a State Essential Services Assessment (State ESA) Exemption.
Other states receiving Ford investments are:
- Ohio: $1.5 billion investment and 1,800 union jobs at Ohio Assembly Plant to build new EV commercial vehicle starting mid-decade, along with an additional 90 jobs and $100 million investment between Lima Engine and Sharonville Transmission plants.
- Missouri: $95 million investment and 1,100 union jobs for a third shift at Kansas City Assembly Plant to increase production of the Transit, America’s best-selling commercial van, and the all-new E-Transit electric van.
Gov. Gretchen Whitmer credited the Legislature’s bipartisan plan to attract EV investment via subsidies.
“I am proud that we came together to deliver economic development legislation that has helped us land huge projects creating thousands of jobs, Whitmer said in a statement. “With this announcement, Michigan has added nearly 25,000 auto jobs since I took office, and we continue to lead the future of mobility and electrification. Let’s continue in this spirit of collaboration to keep growing our economy, creating jobs, and advancing the future of mobility and electrification.”
The CIP will support five facilities in Michigan that Ford says will create 3,030 new jobs and $1.16 billion of investment.
The State ESA will support investments at 10 in Michigan facilities, including the five also supported by CIP, that will lead and additional $854 million of investment and the creation of an additional 230 new jobs.
Chair Bill Ford welcomed the plans.
“Ford is America’s Number 1 employer of hourly autoworkers, and this investment only deepens our commitment to building great new vehicles – from an all-new Mustang to new EVs – right here in the U.S. in partnership with the UAW,” Ford said in a statement. “I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.”
The UAW and Ford didn’t wait for formal UAW contract negotiations to announce new vehicles or plant investments. The current UAW-Ford contract expires in 2023.
“We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles and continue our Ford+ transformation,” Ford President and CEO Jim Farley said in a statement. “Transforming our company for the next era of American manufacturing requires new ways of working, and together with UAW leadership, we are leading the way and moving fast to make improvements to benefits for our hourly employees and working conditions for our factory teams.”
The announcement follows Ford choosing to build an $11.4 billion EV plant in Kentucky and Tennessee. Afterward, lawmaker scrambled to create a billion-dollar fund to attract new investments.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Governor Whitmer Joined Ford to Announce 450 Jobs and $250 Million Investment in Michigan to Support F-150 Lightning Production” by Michigan.gov.
