Ford receives $101M incentive package to expand in Michigan

FILE - A Ford logo, on the tailgate of a 2012 F350 Super Duty pick-up truck, and Ford dealership sign are displayed at Salem Ford in Salem, N.H., on Oct. 25, 2011. Ford Motor Company on Tuesday,May 24, 2022, settled claims by 40 U.S. state attorneys general that the company made misleading claims about the fuel economy and payload capacity of some of its vehicles, violating state consumer protection laws. (AP Photo/Charles Krupa, File) (Charles Krupa, AP2011)

LANSING, Mich. – Michigan lawmakers approved a $101 million incentive package for Ford Motor Co. for a planned project that will create 3,030 jobs and $1.16 billion in manufacturing facility investments throughout the state.

The tax-funded incentive will be paid in increments and is contingent on Ford hitting promised employment targets.

The state Senate Appropriations Committee’s approval last week was the final step for the funds to start being distributed to Ford.

It comes just weeks after the company announced plans to add 6,300 new jobs in the Midwest and invest $3.7 billion in manufacturing facilities across Michigan, Ohio and Missouri.

Gabby Bruno, director of economic development for Ford, said the new investments will allow for the automaker to nearly double the production of Ford’s all-electric truck, the F-150 Lightning, in Dearborn.

“Public-private partnerships like the one that we’re discussing here today are important to keep Michigan at the forefront of automotive manufacturing,” Bruno said at the committee meeting.

The money will come from the Strategic Outreach and Attraction Reserve Fund, which was created in December to attract and retain businesses in the state. Lawmakers approved a $666 million transfer from the fund to General Motors earlier this year.

The creation of the fund followed an announcement from Ford that it was planning to invest $11.4 billion in Tennessee and Kentucky to build an electric truck plant, three battery plants and a supplier park.

State Rep. Jim Yaroch, a Richmond Republican, expressed his concern about the large packages being given to motor companies during a House Appropriations Committee meeting on June 15. The House committee approved the package prior to the Senate’s approval.

“There’s been multiple offers to Ford, GM, Chrysler to stay in Michigan and we pay the big fish to stay,” Yaroch said. “Is this what we’re left with? That we’re going to have to pay companies to stay?”

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Joey Cappelletti is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.