Ford invests $ 3.7 billion in electric and petrol vehicles

Ford Motor Co. announced Thursday that it will invest $ 3.7 billion in assembly plants in Michigan, Ohio and Missouri to produce electric and gasoline-powered vehicles.

Ford, whose shares rose 2.4 percent in day-to-day trading, said $ 2.3 billion of its total investment would be spent on electric vehicles, up from $ 50 billion in electric vehicle spending by 2026 previously.

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

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

In March, Ford said it would increase its spending on electric vehicles to $ 50 billion by 2026, up from $ 30 billion earlier. He also said he would operate the electric vehicle and internal combustion engine companies (ICE (NYSE: ICE)) as separate divisions in an effort to capture Tesla (nasdaq: TSLA), the leader in the electric vehicle industry.

The company said it plans to produce more than 2 million electric vehicles a year worldwide by the end of 2026, about a third of its global output.

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

Biden said in a statement that Ford’s announcement of electric vehicles is great news for American workers. He said Ford’s announcement was “not unfortunate”, but related to US investment in electric vehicle charging infrastructure and battery supply chains.

Ford announced Thursday that it is investing $ 2 billion in three plants in Michigan to increase production of the new F-150 Lightning pickup to 150,000 – an action it had planned earlier in April – as well as to build new petrol versions of the Ranger pickup . and a Mustang sports car. A total of 3,200 new jobs will be created in the state.

The Ohio-based company will invest $ 1.6 billion and create nearly 1,900 jobs, including a new commercial vehicle. The company did not provide details on the vehicle to be built on Lake Avon, but Auto Forecast Solutions said it would be the next generation of the e-Transit van from 2026.

About $ 100 million will be spent in Missouri on adding 1,100 third-shift workers to an assembly plant outside Kansas City to boost production of electric and gas-powered Transit trucks, Ford said.

At the end of 2021, Ford employed approximately 56,000 American hourly workers. They are represented by the Amalgamated Auto Workers Union, with which Ford will negotiate a new employment agreement next year.

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

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