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Ford to Invest $3.7 Billion for Production of EVs, Gas-Powered Vehicles

Published June 2, 2022

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Ford Motor Co on Thursday said it will invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri for production of both electric and gasoline-powered vehicles.

Ford, whose shares were up 2.4% in afternoon trading, said $2.3 billion of the total investment will be spent on EVs, part of the $50 billion in EV spending through 2026 it had previously outlined.

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

As part of the investments, the Michigan-based automaker said it will add more than 6,200 hourly jobs and convert 3,000 temporary workers into full-time employees who will receive healthcare benefits and higher pay. It also will add a new electric commercial vehicle to its lineup mid-decade.

Ford in March said it was boosting its spending on EVs to $50 billion through 2026, up from $30 billion previously. It also said it would run its EV and internal combustion engine (ICE) businesses as separate units in a move aimed at catching EV industry leader Tesla.

The company has said it plans to build more than 2 million EVs a year globally by the end of 2026, about one-third of its global production.

U.S. President Joe Biden issued an executive order in August setting a goal for automakers selling 50% of new vehicles by 2030 as electric or plug-in hybrid models.