Ford Motor Company (NYSE: F) is investing $1.45 billion in an expansion of its Detroit based operations, the automaker announced on Tuesday. The planned development is part of Ford's plans to expand production of next-generation vehicles such as electric and self-driving cars.
Ford intends to split the investments between two of its Detroit based facilities. Ford's Michigan Assembly Plant in Wayne will receive a substantial investment of $750 million in a move that the company says will create 2,700 jobs over the course of three years. The remaining $700 million will be invested in the company's truck plant in Dearborn, where 300 additional jobs will be added. Aiding Ford's investment plans are tax incentives from the State of Michigan to the tune of $35 million.
The expansion of its facilities is primarily intended to spur Ford's plans to increase its stake in the rapidly growing market for electric and autonomous vehicles, though the planned expansions will also greatly aid the production of Ford's existing vehicle lines. The investment in the Wayne plant will help construct facilities to support the modification of autonomous vehicles, as well as Ford's existing vehicle lines. The expansions to the Wayne plant will also go towards new production equipment for the planned Bronco line of trucks that will enter production in 2020, as well as the Ranger pickup truck line. Ford's investment in its Dearborn facility will aid in the production of the company's brand-new line of hybrid and electric F-150 pickup trucks, which will enter the market in 2020. Addressing Ford's investments, Joe Hinrichs, President of the Global Automotive Division, stated "At Ford, we are investing aggressively in building on our strengths today - including trucks and SUVs - while at the same time expanding our leadership into electric and autonomous vehicles."
The investments come as part of Ford's new agreement with the United Auto Workers union, in which Ford pledged to create or retain 8,500 jobs in its domestic facilities. "This is a direct result of the 2019 collective bargaining process, providing additional jobs - and job security - for UAW members in Southeast Michigan," the Union stated. The agreement also stipulates that Ford will invest $6 billion in its domestic facilities.