State reveals more details about Ford’s plans to invest $ 269 million in two Macomb plants – Macomb Daily

Government officials have released more details about Ford Motor Co.’s plans. to add jobs in factories in Macomb County and elsewhere as it increases the production of electric vehicles.

Earlier this month, Ford announced it would invest $ 3.7 billion in Michigan, Missouri and Ohio between now and 2026, and would change about 3,000 full-time temporary workers with pay rises and benefits. For reasons still unclear, there was no information about Macomb’s plants.

The investment includes the company’s spending millions of dollars at its two plants in Sterling Heights and hiring 100 new workers, according to the Michigan Department of Economic Development.

“Ford’s expected capital investment between the two plants is just under $ 270 million,” said Quentin Messer Jr., director of MEDC.

“These investments remain active, but they are stimulated only by the exemption from the evaluation of state basic services (SESA) and not by the state fund for critical industrial program (CEP), which should go through the process of legislative transfer.

According to the MEDC note to the Michigan Strategic Fund, here is a brief overview of the investment:

• Van Dyke Plant, Sterling Heights

Job creation: 18
Investment: $ 159 million
Product: hybrid and battery electric motors
State incentive support: State ESA
The Van Dyke plant is currently focusing on both hybrid and full-battery electric motors. The investment will increase production and create a center of excellence for eMotor and eTrans, positioning the Van Dyke plant as a key facility in Ford’s future strategy for electric vehicles.

• Sterling Axle Plant, Sterling Heights
Job creation: 82
Investment: $ 110 million
Product: F-series and Expedition / Navigator axis
State incentive support: State ESA
The Sterling axle plant currently produces axles for both front-wheel drive and rear-wheel drive vehicles. Ford is considering adding equipment to produce a new F-Series and Expedition / Navigator axle.

Stirling Heights Mayor Michael Taylor applauded the move for what it means for the city and future car workers.

“This ongoing commitment confirms Sterling Innovation District’s reputation as a hub for high-tech manufacturing and a place where the industry can access the high-tech talent it needs,” the mayor said in a statement earlier this month.

This file shows a pair of Ford Mustang Mach E 2021s at a Ford dealer in Wexford, Pennsylvania. The accelerated transition of the automotive industry from internal combustion engines to electric vehicles is creating big stakes for Michigan, as sales of electric vehicles are expected to increase from 2% to 47% in 2030 (AP PHOTO / KEITH SRAKOCIC)

The SESA part includes a 15-year property tax exemption for projects. Both parts were approved by the Michigan Strategic Fund Board.

Officials say the project is in line with MEDC’s strategic focus areas for attracting, retaining and supporting business and promoting the growth of high-paying skills in the focus industries of mobility and automotive, and
advanced production.

A significant number of well-paid jobs will be created at United Auto Workers, according to the note. Under the 2019 UAW contract, Ford will offer a starting salary of approximately $ 17 per hour, leading to an average salary of $ 21 per hour over three years with the potential to rise to $ 29.71 over a period of eight years.

Jobs will include limited health care benefits for employees, 401K contributions, paid leave, funding for educational activities, as well as profit sharing and entitlement to other bonuses.

The MEDC note states that the automotive industry’s transition to electrification faces “unprecedented” competition from other states, such as Kentucky and Tennessee. Ford is investing $ 11 billion in both states to create 11,000 new jobs for electric vehicles and batteries.

Making Michigan the most competitive place through these incentives, MEDC says the state “provides all this investment, the long-term prospects of these facilities and 3,030 skilled jobs and $ 1.160 billion investment in Michigan with the CIP request and an additional $ 854 million investment and 230 jobs requesting an exemption from SESA.

In total, Ford will add 6,200 jobs to factories in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and launch two redesigned models of internal combustion engines. This includes plans to add 2,000 jobs in three assembly plants and another 1,200 in other facilities.

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