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Ford will invest $3.7 billion in the coming years as it beefs up its Midwest manufacturing capabilities and prepares for the launch of the next-generation Ford Mustang and Ranger in North America.
Today the company announced its financial commitment along with a pledge of 6,200 new United Auto Worker (UAW) union jobs. Ford is already America's top employer of hourly autoworkers.
The moves are expected to create a further 74,000 indirect new jobs in America by the end of 2026 based on a 2020 study by BCG on the economic impact of F-Series production.
Alongside the jobs announcement, the company made product news. A statement from Ford regarding the announcement revealed that a new electric commercial vehicle for Ford Pro customers will begin to be produced at its Ohio plant mid-decade. Plant expansion at the site, to accommodate the plans, will begin this year.
The cost of that expansion will be $1.5 billion. When complete, 1.800 union jobs will be installed.
Additionally, the company will spend $100 million investing in Lima Engine and Sharonville Transmission plants, adding 90 jobs along the way.
Ford today confirmed that Michigan will continue to be home to the Mustang and Ranger as both models move into their next generation. The new Ford Ranger has already debuted for a global audience.
The company's Michigan Assemboy Plant in Wayne will construct the Ranger while the Mustang coupe will be produced at Flat Rock Assembly Plant. Those hubs, in addition to the expansion of Ford's Route Electric Vehicle Center in Dearborn, account for $2 billion and 3,200 of the jobs.
A new Ford Customer Service Divison packaging facility will be built in Monroe, Michigan at the cost of $35 million and will use 600 union jobs. It is expected to open in 2024.
"We are thrilled that Ford is advancing its long legacy in Michigan by investing $2 billion to create 3,200 good-paying UAW jobs," said Michigan Governor Gretchen Whitmer in a press release.
"I am proud that we came together to deliver economic development legislation that has helped us land huge projects creating thousands of jobs. With this announcement, Michigan has added nearly 25,000 auto jobs since I took office, and we continue to lead the future of mobility and electrification. Let's continue in this spirit of collaboration to keep growing our economy, creating jobs, and advancing the future of mobility and electrification."
Previous jobs announcements surrounding the expansion of production of the Transit and E-Transit stand with those employment opportunities happening in Missouri. The investment by Ford in that state totals $95 million and will amount to 1,100 new union jobs as part of a third shift at Kansas City Assembly Plant.
Ford has made these announcements ahead of its scheduled negotiations with the UAW. The current UAW contract expires in 2023.
The move is unconventional, with automakers traditionally waiting until a new contract has been finalized to announce commitments and product plans.
"We're 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 in a press release. "Transforming our company for the next era of American manufacturing requires new ways of working, and together with UAW leadership, we are leading the way and moving fast to make improvements to benefits for our hourly employees and working conditions for our factory teams."
"Given the labor shortages it's not surprising to see Ford try to lock in workers by converting temporary workers to full-time status and invest in improving the work place," said Sam Abuelsamid, principal analyst e-mobility at Guidehouse Insights.
The allocations and investments are part of Ford's larger Ford+ strategy that aims to produce 2 million electric vehicles a year globally by the end of 2026 through Ford Model E. At the same time, Ford Blue will continue to work on gas-powered vehicles.
About the writer
Eileen Falkenberg-Hull leads the Autos team at Newsweek. She has written extensively about the auto industry for U.S. News & ... Read more