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Ford to invest $1.2B in 3 Michigan plants
Ian Thibodeau , The Detroit News Published 6:35 p.m. ET March 27, 2017 | Updated 1 hour ago
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Dearborn — Ford Motor Co. will invest $1.2 billion in three Michigan facilities to prepare for production of the all-new Ford Ranger and Bronco, and to support the company’s expansion into mobility.
The company said Tuesday it will invest $850 million to retool its Michigan Assembly Plant in Wayne for truck and SUV production; $150 million in its Romeo Engine Plant to expand capacity for several vehicles; and $200 million to build a data center at the company’s Flat Rock Assembly Plant. Ford announced in January the Flat Rock facility also would see a $700 million investment and 700 new jobs to support the production of electrified and autonomous vehicles.
The total investment represents an additional $350 million above those negotiated as part of the 2015 United Auto Workers contract. Plans for the data center at Flat Rock are new; the company added $150 million to its budget for Michigan Assembly upgrades. The $150 million for the Romeo plant upgrades were previously outlined in the UAW contract. According to the contract, the automaker will invest at least $9 billion in U.S. facilities through 2019.
The investments announced Tuesday are expected to add or retain 130 jobs at the Romeo Engine plant; Ford did not offer employment estimates for Michigan Assembly or Flat Rock.
Joe Hinrichs, Ford president of the Americas, said a portion of the investments announced Tuesday — and those announced in January — add money that was not part of the company’s plans during the 2015 negotiations. The company has been planning some of the investments for “quite some time,” he said.
“It’s a mixed bag here for what’s new,” Hinrichs said. “We think we’re well-positioned... We’re very excited about the future.”
Tuesday’s announcement came as President Donald Trump has pushed U.S. and foreign automakers to build factories and add jobs in the U.S. Ford has announced $1.9 billion in investments in Michigan in the past three months, though roughly half of that amount has been planned since 2015.
“Big announcement by Ford today,” the president tweeted Tuesday morning. “Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”
Hinrichs said the company is encouraged by the president’s economic agenda.
The Michigan Strategic Fund board on Tuesday approved a $10 million performance-based grant for Ford to be used toward its work on the Flat Rock facilities. The fund is a semi-public state board that’s part of the Michigan Economic Development Corp.
The investments are big, Steve Arwood, CEO of the MEDC, told The Detroit News. “That probably nets out to be the biggest day ever in Michigan,” he said. “That’s all good news. There’s not a discouraging word.”
U.S. Congresswoman Debbie Dingell in a statement said Tuesday’s announcement is evidence of Ford’s commitment to the U.S. and Michigan. “...These investments bolster the company’s dedication to building its highest-tech vehicles here in the U.S. and strengthen its commitment to American workers, who are the best in the world,” she said in a statement.
The retooling and expansions in Wayne and Romeo will start next year for 2019 and 2020 model-year vehicles. Construction on the Flat Rock data center will begin later this year, Hinrichs said. That will be the company’s second data center. The first is currently under construction near the Ford World Headquarters in Dearborn.
Hinrichs said the investments officially announced Tuesday will help Ford grow its portfolio. The company is balancing its vehicle production with the expansion into the mobility fields, he said.
Ford predicts its data storage requirements will expand by more than 15 times the company’s current capacity by 2021 due in part to growth in connected and autonomous vehicles.
Tuesday’s announcement drew praises from the United Auto Workers.
“Thanks to collective bargaining, the hard-working men and women at each of these locations will now reap the full fruits of their labor,” UAW-Ford Vice President Jimmy Settles in a statement. “We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come.”
Ford said the Romeo plant investment will add capacity and tooling for a new engine. The plant already makes engines for the Ford Super Duty, E-Series, Ford Shelby GT350 Mustang and Shelby GT350R Mustang.
The Michigan Assembly Plant, which used to be the Michigan Truck Plant, currently makes for Ford Focus. Ford is expected to halt production of that car in mid-2018, industry analysts have said.
Ford’s announcement comes less than a month after Trump, speaking at the American Center for Mobility earlier in March, teased an upcoming auto industry announcement, but did not give details.
“We want to be the car capital of the world again,” Trump he said in a speech to autoworkers. “We will be, and it won’t be long, believe me. ... We’re going to have a very big announcement next week having to do with your industry. Very, very big. Very important.”
It is unclear whether Trump was referring to Tuesday’s announcements by Ford.
Ford stock was up 2.8 percent to $11.77 per share at 11:25 a.m. Tuesday.
Honda North America announced plans late Monday to invest $85 million at its Honda Manufacturing of Alabama plant in Lincoln. The Japanese automaker said the investment is the first of multiple phases and includes a building expansion for assembly, improving manufacturing flexibility and bolstering logistics for future models and future technology. The plant builds the Honda Odyssey, Pilot SUV and Ridgeline pickup and the Acura MDX and employs more than 4,500 people.
[email protected]
Twitter: @Ian_Thibodeau
Melissa Burden and Daniel Howes of The Detroit News contributed.
Ford to invest $1.2B in 3 Michigan plants
Ian Thibodeau , The Detroit News Published 6:35 p.m. ET March 27, 2017 | Updated 1 hour ago
TWEET 124LINKEDIN 106COMMENTEMAILMORE
Dearborn — Ford Motor Co. will invest $1.2 billion in three Michigan facilities to prepare for production of the all-new Ford Ranger and Bronco, and to support the company’s expansion into mobility.
The company said Tuesday it will invest $850 million to retool its Michigan Assembly Plant in Wayne for truck and SUV production; $150 million in its Romeo Engine Plant to expand capacity for several vehicles; and $200 million to build a data center at the company’s Flat Rock Assembly Plant. Ford announced in January the Flat Rock facility also would see a $700 million investment and 700 new jobs to support the production of electrified and autonomous vehicles.
The total investment represents an additional $350 million above those negotiated as part of the 2015 United Auto Workers contract. Plans for the data center at Flat Rock are new; the company added $150 million to its budget for Michigan Assembly upgrades. The $150 million for the Romeo plant upgrades were previously outlined in the UAW contract. According to the contract, the automaker will invest at least $9 billion in U.S. facilities through 2019.
The investments announced Tuesday are expected to add or retain 130 jobs at the Romeo Engine plant; Ford did not offer employment estimates for Michigan Assembly or Flat Rock.
Joe Hinrichs, Ford president of the Americas, said a portion of the investments announced Tuesday — and those announced in January — add money that was not part of the company’s plans during the 2015 negotiations. The company has been planning some of the investments for “quite some time,” he said.
“It’s a mixed bag here for what’s new,” Hinrichs said. “We think we’re well-positioned... We’re very excited about the future.”
Tuesday’s announcement came as President Donald Trump has pushed U.S. and foreign automakers to build factories and add jobs in the U.S. Ford has announced $1.9 billion in investments in Michigan in the past three months, though roughly half of that amount has been planned since 2015.
“Big announcement by Ford today,” the president tweeted Tuesday morning. “Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”
Hinrichs said the company is encouraged by the president’s economic agenda.
The Michigan Strategic Fund board on Tuesday approved a $10 million performance-based grant for Ford to be used toward its work on the Flat Rock facilities. The fund is a semi-public state board that’s part of the Michigan Economic Development Corp.
The investments are big, Steve Arwood, CEO of the MEDC, told The Detroit News. “That probably nets out to be the biggest day ever in Michigan,” he said. “That’s all good news. There’s not a discouraging word.”
U.S. Congresswoman Debbie Dingell in a statement said Tuesday’s announcement is evidence of Ford’s commitment to the U.S. and Michigan. “...These investments bolster the company’s dedication to building its highest-tech vehicles here in the U.S. and strengthen its commitment to American workers, who are the best in the world,” she said in a statement.
The retooling and expansions in Wayne and Romeo will start next year for 2019 and 2020 model-year vehicles. Construction on the Flat Rock data center will begin later this year, Hinrichs said. That will be the company’s second data center. The first is currently under construction near the Ford World Headquarters in Dearborn.
Hinrichs said the investments officially announced Tuesday will help Ford grow its portfolio. The company is balancing its vehicle production with the expansion into the mobility fields, he said.
Ford predicts its data storage requirements will expand by more than 15 times the company’s current capacity by 2021 due in part to growth in connected and autonomous vehicles.
Tuesday’s announcement drew praises from the United Auto Workers.
“Thanks to collective bargaining, the hard-working men and women at each of these locations will now reap the full fruits of their labor,” UAW-Ford Vice President Jimmy Settles in a statement. “We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come.”
Ford said the Romeo plant investment will add capacity and tooling for a new engine. The plant already makes engines for the Ford Super Duty, E-Series, Ford Shelby GT350 Mustang and Shelby GT350R Mustang.
The Michigan Assembly Plant, which used to be the Michigan Truck Plant, currently makes for Ford Focus. Ford is expected to halt production of that car in mid-2018, industry analysts have said.
Ford’s announcement comes less than a month after Trump, speaking at the American Center for Mobility earlier in March, teased an upcoming auto industry announcement, but did not give details.
“We want to be the car capital of the world again,” Trump he said in a speech to autoworkers. “We will be, and it won’t be long, believe me. ... We’re going to have a very big announcement next week having to do with your industry. Very, very big. Very important.”
It is unclear whether Trump was referring to Tuesday’s announcements by Ford.
Ford stock was up 2.8 percent to $11.77 per share at 11:25 a.m. Tuesday.
Honda North America announced plans late Monday to invest $85 million at its Honda Manufacturing of Alabama plant in Lincoln. The Japanese automaker said the investment is the first of multiple phases and includes a building expansion for assembly, improving manufacturing flexibility and bolstering logistics for future models and future technology. The plant builds the Honda Odyssey, Pilot SUV and Ridgeline pickup and the Acura MDX and employs more than 4,500 people.
[email protected]
Twitter: @Ian_Thibodeau
Melissa Burden and Daniel Howes of The Detroit News contributed.
