Ford Motor Co. is creating 6,200 new hourly union jobs in Michigan, Ohio and Missouri that offer full health coverage on day one as part of a new $3.7 billion investment that includes financial support from Michigan and Ohio policymakers, the company announced Thursday.
“We’ve been working very closely with the UAW leadership on this,” Kumar Galhotra, president of Ford Blue, told the Free Press.
In addition, nearly 3,000 United Auto Workers will go from temporary worker status to full-time with full benefits and pay raises, ahead of the schedule set by the union’s collective bargaining contract that expires next year, Ford said.
“Contractually, we don’t have to do this, but we think it’s the right thing to do,” Galhotra said. “We believe and the UAW leadership believes that this is the right thing to do for those employees.”
It’s a long-term investment that keeps the workforce strong, he said.
Ford is also planning to immediately begin spending $1 billion over five years to improve the “work experience” of its U.S. employees based on feedback from the UAW — offering better access to healthy food, better security and lighting in parking lots, better break facilities and new on-site charging stations for electric vehicles driven by employees, Galhotra said.
Ford executives teamed up with Gov. Gretchen Whitmer, a Democrat, for a news conference in Michigan and Gov. Mike DeWine, a Republican, for a celebration at the Ohio Assembly Plant in Avon Lake.
“Ford is investing, they are making strategic decisions about the future of mobility, they’re leading the way. We’ve got to compete with the rest of the world to earn their investment here in Michigan. And we won,” Whitmer said at the Mackinac Policy Conference on Mackinac Island. “This is a big win for Michigan. Ford is going to continue to make these investments and when they invest in Michigan, it’s good for every one of us.”
Galhotra told a cheering crowd in Ohio: “We’re securing our future together. … You don’t beat the competition by waiting around. So we’re moving and we’re moving now.”
During that event, DeWine noted the ripple impact of new union jobs on the overall economy and the importance of U.S. investment. President Joe Biden issued a statement praising the bipartisan work that leads to corporate reinvestment.
Each job for an automaker in the U.S. creates nearly 11 other positions in industries across the economy, according to the Alliance for Automotive Innovation based on data through 2020.
Bill Ford, executive chair of Ford, said in a news release, ““Ford is America’s number one employer of hourly autoworkers, and this investment only deepens our commitment. I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.”
Billions, not millions
Before this latest announcment, executives, including Galhotra and CEO Jim Farley, walked the factory floor at Ford plants around the country and talked with workers about their hopes and goals and needs, Galhotra said.
And then they took action.
Ford confirmed in interviews and a news release:
- Michigan policymakers have offered Ford a Critical Industry Program grant worth approximately $100 million and property tax exemptions worth nearly $50 million.
- Ohio policymakers and Jobs Ohio have offered a grant of $135 million and a job creation credit worth $70 million.
As a result:
- In Michigan, a $2 billion investment will result in 3,200 union jobs, including nearly 2,000 jobs throughout three assembly plants to increase production of the all-electric F-150 Lightning pickup truck to 150,000 vehicles per year at the Rouge Electric Vehicle Center in Dearborn, build an all-new Ranger pickup for North America at Michigan Assembly Plant in Wayne and an all-new Mustang coupe at Flat Rock Assembly Plant. In Monroe, $35 million will be spent on an all-new Ford Customer Service Division packaging facility that will create more than 600 union jobs. It is expected to begin operating in 2024 and speed up parts shipments for customers.
- Ohio will get a $1.5 billion investment and 1,800 union jobs at Ohio Assembly Plant in Avon Lake, west of Cleveland, to assemble an all-new electric commercial vehicle starting mid-decade plus an additional 90 jobs and $100 million investment between Lima Engine and Sharonville Transmission plants.
- Missouri is getting a $95 million investment and 1,100 union jobs — adding a third shift at Kansas City Assembly Plant in Claycomo to increase production of the Transit commercial van and new E-Transit. This is unrelated to Ford F-150 production there.
Ford plans to begin plant expansion by the end of this year in Ohio for the new commercial electric vehicle. And while Farley alluded Wednesday to the appeal of building electric vehicles designed specifically for Lyft and Uber use, company officials declined to comment on whether this was related to vehicles used for ride hailing. They said the vehicle would support Ford Pro business customers.
Billions of investments
In recent months, Ford and General Motors, Stellantis and other automakers have been announcing massive investment plans to build and overhaul plants as the industry transitions from gas-powered vehicles to battery-operated vehicles.
For example, Stellantis and Samsung are investing $2.5 billion to create 1,400 jobs in Indiana. GM invested $2.2 billion to retool Factory Zero in Detroit and Hamtramck before starting production of the 2022 GMC Hummer EV last year. GM had previously announced investments in Michigan, Ohio and Tennessee.
More:F-150 Lightning plant in Dearborn unlike anything Ford has built in 118 years
More:Ford workers at 4 new plants won’t automatically be UAW members: Here’s why
Ford says the latest investments illustrate its 118-year-old commitment to the state. Since 2016, Ford has invested nearly $10 billion in Michigan and created or retained more than 10,000 jobs, the company said. This dollar amount includes refurbishing Michigan Central Station, developing a new Ford Research and Engineering Campus in Dearborn and creating Ford’s Ion Park in Romulus.
Still, Michigan policymakers debated the importance of incentives and partnerships after Fordannounced last year plans to expand its manufacturing presence in Kentucky while also investing billions in Tennessee.
Why Michigan offered incentives
Whitmer said state lawmakers from both political parties worked together to create an incentive package for Ford as part of a long-term strategy in the state.
Like Ohio officials, Michigan officials see these taxpayer investments made with “speed and collaboration” as laying the groundwork for future projects.
“The world’s taken notice. We are winning projects, people are reaching in, exploring investment in Michigan,” Whitmer said. “It’s all hands on deck. Industry leaders have been helpful in our ability to draw investment in Michigan, to pitch Michigan, to talk about the business climate, the workforce talent that we offer that’s so unique. I anticipate that after today’s announcement, that will only enhance the interest in our state. We’ve got a lot of work to do in front of us, but man, there are a lot of great things that are happening.”
Last year was grim, where the narrative of a slow and dysfunctional process in Michigan threw into question whether the state was effectively executing on economic development, Whitmer said.
“When we work together,” she said. “there’s nothing that can stand in our way.”
UAW ‘essential’
As factories get overhauled to accommodate electric vehicles, which require fewer plant workers, Farley said the company is mindful of its history. His grandfather worked at the Rouge in Dearborn. And while the company initially fought the union, executives often spotlight the UAW now.
Ford says it plans to produce 2 million electric vehicles a year globally by the end of 2026 through Ford Model e while maintaining a lineup of gas-powered vehicles.
More:First buyers of Ford’s F-150 Lightning reveal what inspired their purchase
More:Ford specialist has plan to overhaul culture, stop warranty claim finger-pointing
Galhotra, who routinely makes a point of crediting factory workers in public and private remarks, said in a statement, “Ford is America’s automaker and our relationship with the UAW is essential to our success.”
UAW President Ray Curry said in a statement, “We are always advocating to employers and legislators that union jobs are worth the investment. Ford stepped up to the plate.”
Chuck Browning, UAW vice president and director, Ford Department, praised Ford for going beyond what the union contract requires and providing job security and benefits.
“These unprecedented steps taken by Bill Ford and CEO Jim Farley are both a refreshing and innovative approach to labor relations that delivers great benefit when most needed by our hardworking members,” Browning said in a news release.
Money in the Midwest
The latest Ford investments are part of a bigger trend in Ohio and Michigan, the governors said. Michigan is working to foster its business relationships.
“I am proud that we came together to deliver economic development legislation that has helped us land huge projects creating thousands of jobs,” Whitmer said in a news release prior to the news conference. “With this announcement, Michigan has added nearly 25,000 auto jobs since I took office (in 2019), and we continue to lead the future of mobility and electrification.”
Missouri Gov. Michael Parson, a Republican, credited the Ford deal with “driving Missouri’s economy forward.”
Ford confirmed Thursday it employs approximately 21,000 workers in Michigan plants, 7,000 in Ohio and 7,000 at the Kansas City Assembly Plant in Claycomo, Missouri. As of late May, Ford employed about 183,000 workers worldwide.
More:Ford workers at 4 new plants won’t automatically be UAW members: Here’s why
More:Ford CEO says automaker needs ‘totally different talent’ to meet goals.
More:Ford CEO Farley says electric vehicles will be sold 100% online, have nonnegotiable price
Free Press staff writers Eric D. Lawrence and Jamie L. Lareau contributed to this report.
Contact Phoebe Wall Howard:313-618-1034 orphoward@freepress.com.Follow her on Twitter@phoebesaid. Read more on Ford and sign up for our autos newsletter.