Ford to Invest $450 Million in Vehicle Electrification Initiatives in Michigan, Including Moving Battery Pack Assembly from Mexico

Monday, January 11, 2010

Auto company’s investment will retain more than 34,000 jobs

LANSING – Governor Jennifer M. Granholm today announced that Ford plans to invest an additional $450 million in electrification initiatives in Michigan, including moving future battery pack assembly for hybrid vehicles from Mexico to Michigan.

The $450 million brings Ford’s total investment for electrification and new vehicle production in Michigan to approximately $1 billion. Based on standard investment-to-jobs calculations, the project is expected to retain 34,490 jobs, including 8,600 direct jobs.

“Ford continues to demonstrate its commitment to Michigan by bringing together world-class products, advanced technology applications and our talented workforce to build the next generation of vehicles that will help reduce our nation’s dependence on foreign oil,” Granholm said.

In May, Ford announced plans to invest $550 million to convert the Michigan Assembly Plant in Wayne, which previously manufactured large-body vehicles such as the Expedition and Navigator, into a flexible manufacturing facility that will produce smaller, more fuel-efficient vehicles. 

The second phase of the project will include assembling the next-generation hybrid electric vehicle and plug-in hybrid with lithium-ion batteries at the Michigan Assembly facility, producing the hybrid drive transmission for the company’s global products, and manufacturing battery packs and engineering for Ford’s hybrid vehicles. The pack manufacturing will include design and in-house assembly, which is currently done in Mexico. The investment will impact several Michigan Ford facilities, including Michigan Assembly, Wayne Stamping, Van Dyke Transmission in Sterling Heights and the Product Development Center in Dearborn, among others.

“This investment underscores how serious we are about delivering a range of electrified vehicles to customers, including hybrids, plug-in hybrids and pure electric vehicles,” said Bill Ford, Ford’s executive chairman.  “Our industry is at the intersection of three critical global issues: the economy, energy and the environment.  The winning companies will be those that address these issues with vehicles that are also exciting and fun to drive, without compromises.”

Based on the Michigan Economic Development Corporation’s recommendation, the Michigan Economic Growth Authority board today approved Phase II incremental job retention credits valued at $110 million and battery pack tax credits valued at $78 million, for a total incentive package valued at $188 million, to help win Ford’s investment over competing states, China, Europe and Mexico.  The cities of Wayne and Sterling Heights anticipate approval of abatements to support the project, and the Michigan Department of Energy, Labor and Economic Growth will provide support with Incumbent Worker Training Funds.

Ford’s total investment in its electric vehicle strategy will enable production of the Ford Focus electric vehicle at Michigan Assembly in 2011, production of the next-generation Ford hybrid and plug-in hybrid at Michigan Assembly in 2012 and production of hybrid transaxles at Ford Van Dyke Transmission.

Ford is a global automotive industry leader which manufactures or distributes automobiles across six continents, has 200,000 employees and 90 plants worldwide.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit For Pure Michigan® tourism information, your trip begins at Join the conversation on: Facebook Instagram LinkedIn, and Twitter.