Ford may invest $500M in Michigan for electric cars
Ford Motor Co. said today it might invest between $300 million and $500 million to assemble hybrid and plug-in hybrid vehicles and assemble lithium ion batteries in Michigan if it receives tax credits from the state.
The investment would create up to 1,000 new jobs at a plant yet to be named.
"Michigan has a fantastic vision and we received a lot of positive comments," Nancy Gioia, Ford's director of global electrification, said today after testifying for state Senate's commerce committee in Lansing.
Ford is asking the state to modify its battery development tax breaks so that batteries for both hybrid and plug-in electric vehicles are eligible for tax credits. Currently, the tax credits only apply to the development of batteries for plug-in electric vehicles.
Gioia said hybrid vehicles that are powered both by batteries and gasoline engines, such as the Ford Fusion hybrid and Toyota Prius, will account for the bulk of electric vehicle sales for many years.
Currently, Michigan offers a $500 tax credit for a four kilowatt per hour battery pack with a maximum total value of $135 million.
Ford is asking the state to approve tax credits of up to $85 million between 2012 and 2014 and an additional $35 million after 2014. On Wednesday, Gioia will testify Wednesday in front of a Michigan House committee.
"Michigan, we think, is a great site, we think it works well with a number of initiatives Michigan has developed," Gioia said, and "it drives high-value new jobs in Michigan."
However, Gioia said Ford is considering several other sites around the world where it builds or plans to build compact cars, including Louisville, Ky.; Saarlouis, Germany and Chongqing, China.
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