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Ford to invest $135m in Michigan electric vehicle production

Ford is planning to release a Focus Electric next year

Motor manufacturer Ford has announced plans to invest $135 million in its electrified vehicle production facilities in Michigan.

The company is to create 220 jobs as it brings battery and transmission production activities back in-house rather than being supplied by partners abroad.

The production changes pave the way for Ford’s next generation of hybrid electric vehicles.

The manufacturer is preparing to launch two next-generation hybrids, a plug-in hybrid and two all-electric vehicles for the North American market by 2012.

Mark Fields, Ford’s president of The Americas, said today: “Electrified vehicles are a key part of our plan to offer a full lineup of green vehicles, and we are building a center of excellence in the U.S., here in Michigan, to keep Ford on the cutting edge.”

Investment

Plans are to assembly battery packs at Ford’s Rawsonville plant in Ypsilanti, Michigan, with a $10 million capital investment in the plant and the creation of 40 jobs.

Transaxles will be produced at the company’s Van Dyke Transmission Plant in Sterling Heights, Michigan, where 130 jobs will be created and $125 million will be invested. The plant will produce a front-wheel-drive, continuously variable transaxle for its hybrid and plug-in vehicles.

Both facilities are expected to be producing electric vehicle components from 2012.

A further 50 engineers will be hired as the company looks to design and manufacture key electric vehicle components in Michigan, as well as building the vehicles themselves.

In-house

Ford said that bringing its research, engineering and manufacturing closer together, its suppliers, universities and related industries could drive innovation and job growth.

Currently, components for Ford’s hybrid vehicles are supplied by partners in Mexico and Japan.

Ford’s Director of Electrification Programs and Engineering, Sherif Marakby, explained: “We do all the integration – meaning, the software, the controls, how these parts all work together – we do that right here in Michigan, and by having the components or the parts all developed in-house it makes it that much easier to integrate and get more fuel economy out of it, more efficiency, integrate the parts so they’re lighter smaller, and less costly to the customers.”

Ford’s electrified line-up includes launching a Transit Connect Electric light commercial vehicle later this year in North America, with a hybrid version of its luxury sedan, the Lincoln MKZ, will appear this fall.

By having the components developed in-house makes it that much easier to integrate and get more fuel economy” - Sherif Marakby, Ford

The manufacturer is planning to release a Focus Electric in 2011, while 2012 should see an as-yet unnamed next-generation hybrid and a plug-in hybrid electric vehicle based on Ford’s global C-car platform.

Welcome

Today’s announcement by Ford received a big thumbs-up from the United Auto Workers union, which said the new jobs would help the local economy in Michigan while supporting “hundreds” of other jobs in the community.

Bob King, UAW vice president, National Ford Department, said: “We are pleased that both Rawsonville and Van Dyke Transmission have been selected to produce these important components for Ford’s next generation hybrid-electric vehicles.”

Michigan Governor Jennifer Granholm also welcomed the announcement, saying: “Today’s announcement by Ford represents another step forward in moving Michigan from the Rust Belt to the Green Belt by investing in green technology and creating green jobs.”