According to reports, US car-making giant Ford Motor Company(NYSE:F) has revealed that it plans to invest as much as $1.2 billion as part of a proposed shake up of three Michigan plants.
The company said $850 million will be injected on installing new machines in the plant in Wayne where Ford aims to manufacture Bronco and Ranger models. This investment will also generate 130 jobs at its Romeo engine parts plant, Ford said in a statement.
DEARBORN, M-based Ford Motor Company(NYSE:F) said in the start of 2017 that it would cancel a $1.6 billion plant it had intended to build in Mexico.
Meanwhile US President Donald Trump, who almost forced Ford over its Mexico investment, tweeted earlier on Tuesday:
“Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to US. JOBS! JOBS! JOBS!”
The latest Ford’s US investment is largely aligned with a past agreement it settled with the United Auto Workers union.
During his election campaign and even after getting elected Mr. Trump has been vowing job announcements at the White House that had been previously planned or announced.
He also recently commended an investment decision by Charter Communications that the company had revealed before he was elected.
Ford said it will invest $150 million on its Romeo plant to bolster its ability to make car parts, and $200 million will be ploughed into a new data centre.
“We’re optimistic that we’ll continue to see good economic growth for the US in the near term,” said Joe Hinrichs, president of the Americas at Ford. “We feel very confident about our plan and our products and about investing in Michigan and the US.”
Moreover the $1.2 billion in total is in addition to $700 million to expand Ford Motor Company(NYSE:F) plant at Flat Rock in Michigan, which it publicized in January.
Last week Ford Motor (F) said in a statement that it predicted higher investments, as well as other expenses, to drag on 2017 earnings.