Footballfan Posted May 28, 2022 Share Posted May 28, 2022 (edited) Michigan to pledge $135M to help Ford retool Metro Detroit plants (detroitnews.com) The bits and pieces I could find stated that plants in SE Michigan will get investments for EVs and components. Supposedly there would also be investments for ICE vehicles and parts as well. Edited May 28, 2022 by Footballfan 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 28, 2022 Share Posted May 28, 2022 Michigan plans to pledge $135M to help Ford invest in Metro Detroit plants Chad LivengoodRiley Beggin The Detroit News https://www.detroitnews.com/story/business/autos/ford/2022/05/27/michigan-pledge-135-m-help-ford-retool-metro-detroit-plants/9961971002/ Lansing — Michigan is poised to commit as much as $135 million in state taxpayer incentives to Ford Motor Co. toward investments in the automaker's manufacturing facilities in southeastern Michigan, The Detroit News has learned. The automaker's plans, dubbed "Project Sand" by state economic development officials, involve retooling plants for both electric and internal combustion engine vehicles and parts, two sources told The News. The investment is billed as one that would add 3,000 new jobs at local Ford facilities, three sources familiar with the proposal told The News. Under the deal, the details of which were still subject to change, the state would pledge $100 million from a new job-creation fund the Legislature established in December as part of a deal to land $6.5 billion in EV investments from General Motors Co., two sources told The News. The remaining incentives would come from a State Essential Services Assessment property tax exemption at certain Ford facilities, two sources said. An announcement with Ford and state political leaders was being scheduled for Thursday during the Detroit Regional Chamber's Mackinac Policy Conference, according to two sources briefed on Ford's plans. The Michigan Strategic Fund, an economic development board that must approve spending from the job-creation fund, scheduled an emergency meeting for earlier that morning, according to a board member who spoke on the condition that they not be identified. The staff had not said what will be on the agenda, that board member said. Ford's total planned commitment to reinvestment in the Michigan facilities was not clear Friday. Ford spokesman Mark Truby declined to comment. If approved, the deal would give Michigan leaders another showpiece suggesting it can compete to retain and attract investment in electric vehicle production facilities. It also would further deplete Michigan's newest funding source for luring investment in the state. In late January, the Michigan Strategic Fund's board awarded GM and its battery partner LG Energy Solution $666 million in cash incentives from the new $1 billion fund, leaving a $333 million balance in the Strategic Outreach and Attraction Reserve Fund. State officials and lawmakers have been scrambling for months to secure new investments in EVs in Michigan from the Detroit Three automakers after Ford announced an $11.4 billion mega-investment with EV battery partner SK Innovation in Kentucky and Tennessee last fall. The expected announcement would come a week after Stellantis NV unveiled a planned $2.5 billion joint investment with South Korean battery manufacturer Samsung SDI in Kokomo, Indiana — another major EV-related investment from a Detroit automaker placed outside of Michigan. Bobby Leddy, a spokesman for Gov. Gretchen Whitmer, declined to comment on the plans Friday. Whitmer, a Democrat seeking re-election this year, has asked the Republican-controlled Legislature for $500 million more to replenish the funds as her administration tries to compete with other states for big economic development deals involving EV and semiconductor manufacturing, as well as the pharmaceutical industry. Stellantis' planned Kokomo battery plant with Samsung would create 1,400 jobs, the companies estimated. It is Stellantis' first U.S. gigafactory investment to supply North American electric vehicle assembly and is expected to launch in 2025. Earlier this month, the transatlantic automaker also said it would put $2.8 billion into Canadian EV operations in Windsor and Brampton in Canada. "Michigan’s pipeline remains strong and we remain laser-focused on working closely with our partners across state government, the Legislature, our utilities and our regional partners to continue make the strong case for Michigan," Michigan Economic Development Corp. CEO Quentin Messer Jr. told The News after Stellantis announced its investment in Indiana. Those announcements came on the heels of Ford's plans to invest $11.4 billion at facilities in Kentucky and Tennessee to build electric vehicles and batteries in partnership with SK Innovation. The move set off a scramble in Lansing to make Michigan more competitive for future projects, culminating in the December economic development deal to secure GM's investment in the state. A month later, GM confirmed it would create 4,000 jobs at EV and battery production facilities in Delta Township and Lake Orion. The Detroit Three's actions are part of the auto industry's larger transition from gas- and diesel-powered vehicles to electric ones. The race is on to determine whether Michigan will remain the center of the U.S. automotive industry, or whether investments in the South and elsewhere will overtake Michigan's traditional dominance. Foreign-owned legacy automakers such as Honda Motor Co., Nissan Motor Co., Volkswagen AG, Toyota Motor Corp., Mercedes-Benz, BMW AG, Hyundai Motor Co. and Subaru Motor Co. are building vehicles in Ohio, Tennessee, Kentucky, Indiana, South Carolina, Georgia, Alabama and Mississippi. Startups like Lucid, Rivian, Nikola and Tesla Inc. are posted in Arizona, Illinois, California and Texas. Michigan leaders say they're pushing to attract continued investments to the state, and noted in December that there were four projects considering Michigan that could use the economic development funding. 1 Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted May 28, 2022 Share Posted May 28, 2022 3 hours ago, jpd80 said: Michigan plans to pledge $135M to help Ford invest in Metro Detroit plants Chad LivengoodRiley Beggin The Detroit News Startups like Lucid, Rivian, Nikola and Tesla Inc. are posted in Arizona, Illinois, California and Texas. Rivian is building a $5 billion dollar plant with 7500 jobs in Georgia. Quote Link to comment Share on other sites More sharing options...
Footballfan Posted May 28, 2022 Author Share Posted May 28, 2022 3 hours ago, Harley Lover said: Rivian is building a $5 billion dollar plant with 7500 jobs in Georgia. The $135million is just the money the state is giving Ford. The total amount of Ford's investment is unknown at this time but I would imagine it would be several billion dollars. Quote Link to comment Share on other sites More sharing options...
ausrutherford Posted May 31, 2022 Share Posted May 31, 2022 Since MAP is busy with Ranger and Bronco and DTP is busy with the F-150, Raptor, and Lightning, could this be for Flat Rock? 2 Quote Link to comment Share on other sites More sharing options...
Footballfan Posted May 31, 2022 Author Share Posted May 31, 2022 1 hour ago, ausrutherford said: Since MAP is busy with Ranger and Bronco and DTP is busy with the F-150, Raptor, and Lightning, could this be for Flat Rock? I believe so. The fund Michigan is drawing from is for new plants or major expansions of existing ones. 3000 jobs would be quite a few without adding shifts to a plant like Flat Rock. Quote Link to comment Share on other sites More sharing options...
bzcat Posted May 31, 2022 Share Posted May 31, 2022 Finally some investment in Flat Rock to install a new paint booth so it can build SUVs... Quote Link to comment Share on other sites More sharing options...
ice-capades Posted June 1, 2022 Share Posted June 1, 2022 (edited) 23 hours ago, bzcat said: Finally some investment in Flat Rock to install a new paint booth so it can build SUVs... fuzzymoomoo can probably answer that question better than anyone. Is the paint booth at Flat Rock (FRAP) the primary limitation to vehicle production or are there other issues at the plant that would also need to be addressed in order for FRAP to be able to produce higher roof (CUV/SUV) vehicles? Edited June 1, 2022 by ice-capades Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 1, 2022 Share Posted June 1, 2022 36 minutes ago, ice-capades said: fuzzymoomoo can probably answer that question better than anyone. Is the paint booth at Flat Rock (FRAP) the primary limitation to vehicle production or are there other issues at the plant that would also need to be addressed in order for FRAP to be able to produce higher roof (CUV/SUV) vehicles? Without getting too specific, yes there are space issues in both paint and final assembly. The big question is if the company feels they can get good ROI on fixing them. Quote Link to comment Share on other sites More sharing options...
ice-capades Posted June 1, 2022 Share Posted June 1, 2022 17 minutes ago, fuzzymoomoo said: Without getting too specific, yes there are space issues in both paint and final assembly. The big question is if the company feels they can get good ROI on fixing them. Thanks! I'd certainly hope the issues could be addressed without a long, extended period of reconstruction that would impact Mustang production. Although FRAP was built and operated as a joint venture with Mazda for many years, it's an iconic facility just because it's been the production source for Mustang's for so many years. Ford has utilized the facility for a number of functions in addition to Mustang production. I'll trust Ford to find the right answer to FRAP's future. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 1, 2022 Share Posted June 1, 2022 22 minutes ago, ice-capades said: it's an iconic facility just because it's been the production source for Mustang's for so many years. So was Dearborn Assembly being the original Mustang plant and they tore that place down. I don't think they think that way when it comes to production facilities. Quote Link to comment Share on other sites More sharing options...
ice-capades Posted June 1, 2022 Share Posted June 1, 2022 18 minutes ago, fuzzymoomoo said: So was Dearborn Assembly being the original Mustang plant and they tore that place down. I don't think they think that way when it comes to production facilities. Welcome to corporate America! 1 Quote Link to comment Share on other sites More sharing options...
Footballfan Posted June 2, 2022 Author Share Posted June 2, 2022 Michigan investments for a new Ranger, Mustangs and more Lightnings. These were already in the pipeline. New parts distribution center in Monroe. Seems more like an election year PR piece for Whitmer. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 2, 2022 Share Posted June 2, 2022 3 hours ago, Footballfan said: Michigan investments for a new Ranger, Mustangs and more Lightnings. These were already in the pipeline. New parts distribution center in Monroe. Seems more like an election year PR piece for Whitmer. Or Ford reminding investors (and the union) of promises made in the 2019 contract. Most of today's announcement is in there. Quote Link to comment Share on other sites More sharing options...
Footballfan Posted June 2, 2022 Author Share Posted June 2, 2022 6 hours ago, fuzzymoomoo said: Or Ford reminding investors (and the union) of promises made in the 2019 contract. Most of today's announcement is in there. I would liked to have seen the investment/job breakout for each plant. The fund for which Michigan is drawing was for so-called "transformational" products. I thought initially Ford may be announcing a new battery plant or a new product/paint shop for FRAP. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 3, 2022 Share Posted June 3, 2022 18 minutes ago, Footballfan said: I would liked to have seen the investment/job breakout for each plant. The fund for which Michigan is drawing was for so-called "transformational" products. I thought initially Ford may be announcing a new battery plant or a new product/paint shop for FRAP. I found it earlier and never got a chance to post it. I'll look through my history and see if I can find it. Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted June 3, 2022 Share Posted June 3, 2022 21 hours ago, fuzzymoomoo said: I found it earlier and never got a chance to post it. I'll look through my history and see if I can find it. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 3, 2022 Share Posted June 3, 2022 19 minutes ago, Harley Lover said: I found one that wasn't paywalled Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted June 3, 2022 Share Posted June 3, 2022 21 hours ago, Footballfan said: I would liked to have seen the investment/job breakout for each plant. The fund for which Michigan is drawing was for so-called "transformational" products. I thought initially Ford may be announcing a new battery plant or a new product/paint shop for FRAP. The only additional shift mentioned specifically is Quote 1,100 jobs at a Kansas City assembly plant in Missouri, adding a third shift to boost production of both the gasoline-powered Transit van and the battery-powered E-Transit van Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted June 3, 2022 Share Posted June 3, 2022 1 hour ago, Harley Lover said: The only additional shift mentioned specifically is Theres very likely going to be a 3rd shift added at MAP before too long. I've been hearing it's a matter of when, not if. All depends on supply chain. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.