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Ford to Invest Nearly $1 Billion in Michigan (updated)

The Freep reports that Ford Motor Co. and the state of Michigan have reached a tentative 20-year deal in which the automaker would invest up to $1 billion in facilities here, saving 13,000 jobs. Michigan is offering the automaker $151 million in tax incentives.

Ford's president of the Americas Mark Fields said "We want to make it very clear that the Ford Motor Co. believes in the future of Michigan. The investments would be dedicated to expanding flexible manufacturing at several of our facilities here in Michigan and be used for the research and development of future products, advanced powertrain technologies and hybrid vehicles."

Read Read Ford to invest up to $1 billion in state in the Detroit Free Press.

Freep business writer Tom Walsh analyzes the proposed plan and says:

What's happening here is that Ford and the state, via the Michigan Economic Development Corp., are essentially formalizing something the federal government has long resisted -- a state industrial policy that pledges to do virtually whatever it takes to support and preserve a key industry. In this case, the auto industry.

Mark Fields is quoted as saying ""In the Western world, the lack of a strong manufacturing policy, inconsistent industry-government cooperation and the rising cost of regulations and social issues have resulted in a steady exodus of auto jobs from longtime players, including Ford. Asian nations value their established automakers and they root them on to success."

Full transcript of Mr. Field's speech (recommended)

Posted/updated Aug 10, 2006
by Andrew McFarlane (Absolute Michigan)