On June 2, 2022, Ford Motor Company announced an investment of more than $2 billion in electric vehicle production across the company’s plants in Michigan. The project is expected to create more than 3200 well-paid UAW jobs and help further the company’s electric vehicle future in the state.
“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 Governor Gretchen Whitmer.
“Today’s announcement marks another historic economic win for the state in recent months and will help our economy grow even stronger. 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,” she added.
This follows the announcement in January, 2022 of a historic $7 billion investment by General Motors to build its all-electric future in the state, converting its Orion Township assembly plant to produce full-size EV pickups and building Ultium’s third U.S. battery cell plant in Lansing, plus a $1.7 billion investment by LG Energy Solution to quintuple its battery production capacity in Holland. Michigan.
The new Ford investments announced today will secure critical activities related to electric and internal combustion vehicle production. More than 65 percent of the new jobs supported through the Critical Industry Program will help drive new EV and other vehicle production-related activities across five plants in Southeast Michigan, including a new packaging facility in Monroe Charter Township. As the company continues to electrify its existing fleet, the remaining investment will help ensure those vehicles will also be built in Michigan by providing a strong base in Michigan for future decisions around converting vehicles and plants to electric.
“Ford is committed to leading the electric vehicle revolution and strengthening our portfolio of iconic vehicles that customers love. That’s why we’re announcing historic investments in our home state of Michigan, creating thousands of high-quality union jobs to expand production of the all-new F-150 Lightning as well as the next generation global Mustang and Ranger for the U.S. market,” said Kumar Galhotra, president, Ford Blue.
“Ford is proud to assemble more vehicles and employ more union auto workers in the U.S. than any other auto manufacturer, and with today’s announcement, we will have created or retained 10,000 jobs and invested more than $10 billion in Michigan since 2016,” he added.
Back in January, the Michigan Strategic Fund approved support for GM’s transformational projects in Orion Township and the Lansing area, creating 4000 new jobs and generating $6.5 billion in total capital investment. In addition to these EV-related investments in Michigan, GM also announced it is investing more than $510 million in its two Lansing-area vehicle assembly plants to upgrade their production capabilities for near term products.
“GM’s $7 billion investment in Michigan—the largest in their history—will create and retain 5,000 good-paying jobs and enable us to build on our legacy as the place that put the world on wheels,” said Governor Whitmer. “When it comes to investing in Michigan, GM and I have the same philosophy: ‘Everybody In.’ Michigan’s future is bright, and I will continue working with anyone to make transformational investments in our economy, create good-paying jobs, and empower working families.”
General Motors plans to expand at its Orion Township facility to convert part of the site to support the production of EV trucks. The company will construct several additions to the facility, renovate certain areas and make site improvements over the next three to five years, along with adding machinery, equipment, and special tooling. The project is expected to generate a total capital investment of $4 billion and create 2,300 jobs. The project will also retain 1,000 jobs.
“Today we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity,” said Mary Barra, GM Chair and CEO.
“These important investments would not have been possible without the strong support from the Governor, Michigan Legislature, Orion Township, the City of Lansing, Delta Township as well as our collaboration with the UAW and LG Energy Solution. These investments also create opportunities in Michigan for us to bring our employees along on our transition to an all-electric future,” she continued.
Through its joint venture with LG Energy Solution, GM also plans to construct its third U.S. Ultium high-volume battery cell manufacturing facility in the city of Lansing and Delta Township. The facility will include a clean room environment, machinery and equipment that will allow for the high-volume output necessary to produce cells at this capacity. The project is expected to generate a total capital investment of $2.5 billion and create 1,700 jobs.
GM’s decision to expand in Michigan will have a far-reaching impact on the entire state, with the influx of jobs resulting in spinoff investments and local redevelopment opportunities. Over 20 years, more than $28.8 billion in new personal income is expected to be generated by the direct, indirect, and induced jobs this opportunity will create, much of which will be spent at local small businesses throughout the community and the state.
In addition, the project has an employment multiplier of 3.8, which means that an additional 2.8 jobs in Michigan’s economy are anticipated to be created for every new direct job, due to the extensive supply chain that exists in Michigan.
To support Ford’s investments, the Michigan Strategic Fund approved:
- Critical Industry Program (CIP) through Strategic Outreach and Attraction Reserve Fund (SOAR) – $100.8 million;
- The Critical Industry Program will support investments at five facilities in Michigan that will lead to the creation of 3,030 new jobs and $1.16 billion of investment; and
- State Essential Services Assessment (State ESA) Exemption – $34.4 million.
The State ESA will support investments at 10 in Michigan facilities, including the five also supported by CIP, that will lead and additional $854 million of investment and the creation of an additional 230 new jobs.
To support GM’s investments, the Michigan Strategic Fund approved:
- A Critical Industry Program grant in the amount of $600 million for the creation of up to 4000 jobs related to the Orion Township and Ultium projects;
- An 18-year Renewable Energy Renaissance Zone which will require a minimum investment of $1.5 billion with the potential for up to $2.5 billion, estimated to be worth $158 million;
- A Strategic Site Readiness Program grant in the amount of $66.1 million awarded to the Lansing Economic Area Partnership (LEAP) for public infrastructure and utility upgrades.
The Michigan Economic Development Corporation also authorized a State Education Tax abatement to be used in conjunction with the locally approved Orion Township abatement in support of the GM expansion.
Photos courtesy of the office of Governor Gretchen Whitmer.