Ford invests €3.5 billion in US production
10 June 2022
Ford will invest $3.7 billion (€3.5 billion) in its key US manufacturing sites in Michigan, Ohio, and Missouri. The investment will be used to produce both electric vehicles (EVs) and cars powered by internal-combustion engines (ICEs).
The funding will support Ford’s wider plans to build two million electric cars a year globally by 2026. As part of the investment, the carmaker will add 6,200 manufacturing jobs and convert 3,000 temporary employees to permanent full-time ones. Ford also said it would spend $1 billion over five years to improve the workplace environment in the US, with these enhancements including new EV chargers.
The Michigan-based manufacturer confirmed that a new electric commercial vehicle will debut in mid-decade, and will be built in Ohio. Ford plans to boost production of the F-150 Lightning in Michigan, and an all-electric E-Transit in Missouri.
Transforming the Ford brand
‘This investment only deepens our commitment to building great new vehicles – from an all-new Mustang to new EVs – right here in the US,’ said Bill Ford, executive chair of Ford. ‘I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.’
The announcement comes a year after the car manufacturer detailed its so-called Ford+ plan to speed up the development of EVs and connected vehicles. At the same time, the brand is hanging on to petrol-powered vehicles, calling its upcoming Mustang coupe a ‘must-have.’
Most of the money will flow into Ford’s home base in Michigan, where the manufacturer will spend $2 billion. Since 2016, it has poured around $10 billion into the location, where Ford operates several assembly plants, and plans to ramp up production.
Ohio, which has held a pivotal role in Ford’s history for decades, will benefit from a $1.5 billion investment. The manufacturer currently builds E-Series vans, medium-duty trucks, and super-duty chassis cabs, with plans to assemble a new electric commercial vehicle there.
Meanwhile, Ford will inject $95 million into Missouri, where it manufactures one of America’s best-selling commercial vans, the Transit. It also aims to boost production of the E-Transit electric van.
‘We are investing in American jobs and our employees to build a new generation of incredible Ford vehicles and continue our Ford+ transformation,’ said Ford president and CEO Jim Farley.
‘Transforming our company for the next era of American manufacturing requires new ways of working, we are moving fast to make improvements to benefits for our hourly employees and working conditions for our factory teams.’
General Motors (GM), one of Ford’s main rivals, earlier this year announced a historic $7 billion investment in Michigan to significantly boost its battery-cell and electric-truck manufacturing capacity. Both carmakers are in close competition with each other, with GM aiming to become the EV market leader in North America by 2025.
US states are wooing automakers, including Ford and GM, with big subsidies for the construction of EV and battery plants. At the end of last year, Michigan passed a $1.5 billion bill to expand state incentives, including for EV production. President Biden’s administration is eager to push for cleaner cars, and has set an ambitious target of a 50% EV share of sales in the US by 2030.