Ford is investing $3.7 billion in electric and gas-powered vehicles

DETROIT/WASHINGTON, June 2 (Reuters) – Ford Motor Company (FN) On Thursday, it said it would invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri to produce gasoline-electric vehicles.

Ford, whose shares rose 2.4% in afternoon trading, said $2.3 billion of total investment will be spent on electric vehicles, part of the $50 billion spending on electric vehicles through 2026 it had previously set.

Ford officials said the company will receive incentive packages of about $150 million and about $200 million from Michigan and Ohio, respectively.

Register now to get free unlimited access to Reuters.com

As part of the investments, the Michigan-based automaker said it will add more than 6,200 hourly jobs and turn 3,000 temporary workers into full-time employees who will receive health care benefits and higher wages. It will also add a new electric commercial vehicle to its lineup in the middle of the decade.

Ford said in March it had boosted its spending on electric vehicles to $50 billion through 2026, up from $30 billion previously. It also said it would run its electric vehicle and internal combustion engine (ICE) businesses as separate units in a move aimed at catching Tesla, the electric car leader. (TSLA.O). Read more

The company said it plans to build more than two million electric vehicles annually globally by the end of 2026, about a third of its global production.

US President Joe Biden issued an executive order in August setting a goal for automakers to sell 50% of new cars by 2030 as electric models or plug-in hybrids.

See also  It's possible that Amazon Warehouse is in the works for Salinas
A new Ford E-Transit inside the company’s Halewood plant in Liverpool, Britain, October 18, 2021. REUTERS/Phil Noble

Biden said in a statement that Ford’s announcement of “electric vehicles is good news for American workers.” He said Ford’s announcement was “not coincidental” but stemmed from US investments in electric vehicle charging infrastructure and the battery supply chain.

Ford said Thursday it would invest $2 billion in three Michigan plants to increase production of its new F-150 Lightning pickup truck to 150,000 — a measure it set out earlier in April — as well as build new gas-powered versions of the Ranger. And a sports car, a Mustang. There will be 3,200 new jobs in the state. Read more

Kumar Galhotra, head of Ford Blue’s internal combustion division, said the new investment will boost electric vehicle production plans, but added “for the millions of loyal Ford customers not yet ready to use electricity, who will want and need Ford’s great gasoline-powered vehicles.” For years to come, we will continue to build great and distinctive new vehicles.”

The company’s Ohio operations will see $1.6 billion in investment and the creation of nearly 1,900 jobs, including the new commercial vehicle. The company didn’t give details on which vehicle would be built in Avon Lake, but Auto Forecast Solutions said it would be the next generation e-Transit van, starting in 2026.

Ford said about $100 million will be spent in Missouri to add 1,100 workers for a third shift at an assembly plant outside Kansas City to boost production of electric and gas pickup trucks.

Ford employed about 56,000 hourly workers in the United States at the end of 2021. They are represented by the United Auto Workers union, with which Ford will negotiate a new labor agreement next year.

See also  Elon Musk introduces Twitter buy: Live news updates

Ford also said $1 billion of Thursday’s total will be spent over the next five years to “improve work environments” in factories, including providing better access to healthy food, installing electric chargers in parking lots, and improving security and lighting in factory parking lots. . .

Register now to get free unlimited access to Reuters.com

(Ben Kleiman reports in Detroit). Additional reporting by David Shepardson. Editing by Mark Porter and Jonathan Otis

Our criteria: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.