Ford Motor company in U.S announced that they would invest 1.2 billion dollars in the three Michigan factories. This is intended to pave the way for the return of the Bronco Sport and Ranger pickup utility vehicle hence winning praise for President Trump.
More than 1 billion dollars of Ford’s spending will be used in assembly and engine plants for the Bronco and Ranger models that will be used to replace the production of the slow-selling of the popular Focus compact cars that are moving to Mexico. Another 200 million dollars will go to the new advanced data center at Ford’s factory in Michigan, Flat Rock, where the company has promised to add 700 jobs.
This announcement was made in the early morning by a tweet made by President Trump, who in the past few weeks urged all car companies to stick to his pledge to ease hiring regulations.
On early Tuesday, President Trump posted an announcement that he referred to as Ford’s big announcement. The report concerned significant investments that would be made in the three Michigan plants to increase jobs opportunities in U.S.
In an interview, the Americas Ford’s president Joe Hinrichs said that the investments were based on some of the contract negotiations with all the Workers of United Auto union of 2015. The automaker stated that it had plans to retain 130 jobs in its Michigan, Romeo, engine factory. Workers at its assembly plant in Michigan, Wayne, will start to make the Bronco in 2020 and Ranger in 2018.
Hinrichs said while using a phone that the investments in Romeo and Michigan Assembly Plant have been working for quite some time and they had not discussed the items that were announced on Tuesday by the president.
When Trump visited Detroit earlier this month, he asked all the top executives of the main automakers in U.S to try and boost employment regarding his move of extending a review of emissions standards and fuel economy.
Trump told all the chief executives of Ford that they need to come back and create a big number of jobs in U.S. Trump also said that rules that were imposed by Obama’s administration in order to raise car’s average gas mileage to more than 50 miles per gallon before the middle of the coming decade could destroy the auto industry in U.S.
Hinrichs said that Ford’s investments were not in response to what Trump’s demanded and claimed that he is appreciating the attention that the president is making to the U.S company’s investments.
Hinrichs said that Trump’s attention to U.S company’s investments reinforces the importance of manufacturing jobs in America and as the leading vehicle producers in U.S. and they think that it is very much consistent with all the pro-growth initiatives that the U.S Congress and White House will bring forward to the growth of the U.S economy.
Hinrichs said that the announcements were truly timed to coincide with the state of Michigan’s tax credit and grant decisions. Ford received more than $31 million in incentives on that Tuesday from the state in return for all the three plants investments.
Ford’s changing of Michigan Assembly to a truck factory would be a reversal of what it did eight years ago when it spent about $5.9 billion federal loans to start producing hybrids and small cars at the Michigan, Wayne, site. The U.S Energy Department gave a low-interest loan aiming to promote work on the fuel-efficient cars that came during the time when Ford was trying to survive after getting $14.7 billion loss in 2008.