To ensure the success of the development of fuel-saving vehicles, Ford Motor Co. will invest $850 million and add 1,200 jobs in Michigan by 2013. Ford said that these moves are supported by $400 million in state incentives.
Ford’s factories will have 900 additional hourly positions in its factories while its engineering and manufacturing operations will be getting 300 salaried jobs more.
In a statement, Ford said that these jobs will be added at plants including Ford's Van Dyke Transmission, Sterling Axle, Livonia Transmission and the Dearborn Truck Plant.
A big portion of this investment will be used for the expansion of the production of six-speed transmissions. Mark Fields, Ford's president of the Americas, said that the state of Michigan is supporting Ford in the form of up to $400 million worth of tax breaks over 15 years.
Fields said that this type of investment would have been “much more difficult” if there had been no package of job-retention tax incentives.
Similar incentives for Chrysler Group will also soon be taken up by the state board. There are also proposed amendments on the agenda for affiliates of General Motors Co. and for Hyundai Motor Co.'s technical center.
The amounts weren’t revealed. Ford has started to expand its US workforce as it gains market share with new models such as the Fiesta subcompact and Super Duty pickups.
Ford had said that by 2012, it will add 1,975 hourly jobs to do work typically done by suppliers. This is exactly 416 more positions than Ford had pledged in its 2007 contract with the UAW.