It seems like U.S. President Donald Trump’s criticism for automaker Ford Motor Co. (NYSE: F) will finally come to an end as the company has announced an investment of $1.2 billion in 3 Michigan facilities. This includes an engine plant that will create nearly 130 jobs.
In January this year, auto giant Ford made an announcement that it would be stopping a Mexico-based factory (worth $1.6 billion) and begin investing $700 million in order to expand a Michigan plant. This expansion was touted to offer employment to nearly 700 people.
At that time, Mark Fields, Ford CEO, has said that they hadn’t signed an agreement with Trump. Trump had criticized the automaker for taking away jobs from American and transferring them to Mexico.
The newly-elected president has taken a pledge to create employment in the nation by offering incentives to companies so that they stop outsourcing operations overseas. He has been talking about reducing taxes and easing regulations to encourage firms to employ Americans.
Trump Tweets About Ford’s Announcement
Trump was ecstatic in sharing Ford’s ‘big announcement’. He tweeted that Ford was going to make major investments in 3 Michigan plants. Trump has been pushing car companies to return jobs to the U.S. economy as a part of his agenda. Since the time he took to office, Trump has organized multiple White House meetings with various auto executives including Mark Fields, Ford CEO.
It seems like these investments were already undergoing a discussion before Trump was elected to office. In November 2015, Ford had announced its plans to improve certain Michigan plants under a new contract.
Joe Hinrichs, Ford America’s President, said that the White House was informed about the company’s decision on Tuesday morning (March 28th). He added that it is a norm for Ford to connect with national and state political leaders prior to a major announcement
Ford’s Michigan Investment
Ford is planning to spend nearly $850 million in upgrading the Michigan Assembly Plant coming year. It will be utilized for building the Ford Bronco SUV and the midsize pickup Ford Ranger. The building operations for the Ranger are likely begin year ending 2018. The work on Bronco will start in 2020.
Ford is also investing $200 million to build a data center which will collect information from connected and self-driving vehicles. The center will be built within a Detroit-based assembly plant.