Trump Applauds Ford’s Investment in Michigan Plants

Trump Applauds Ford’s Investment in Michigan Plants
U.S. President Donald Trump greets Ford Motor Company CEO Mark Fields as he hosts a meeting with U.S. auto industry CEOs at the White House in Washington on Jan. 24, 2017. (REUTERS/Kevin Lamarque)
Reuters
3/28/2017
Updated:
3/28/2017

DETROIT/WASHINGTON—Ford Motor Co on Tuesday said it would invest $1.2 billion in three Michigan facilities and create 130 jobs in projects largely in line with a previous agreement with the United Auto Workers union, hours after U.S. President Donald Trump touted a “major investment” by the automaker on Twitter.

In January, Ford scrapped plans to build a $1.6 billion car factory in Mexico and instead added 700 jobs in Michigan following Trumps criticism that centered on trade and investing in America.

Ford said on Tuesday it would spend $850 million on a planned upgrade of a plant in Wayne, Michigan, for the Ford Bronco, an SUV model, and the Ford Ranger—a mid-size pickup truck. The company will also invest $150 million and create 130 or retain jobs at an engine plant in Romeo.

Both projects were part of 2015 negotiations with the UAW, when Ford said it would invest $9 billion in U.S. plants over four years.

Ford also said it would invest $200 million in a data center in Flat Rock to support advances in vehicle connectivity and future developments in autonomous vehicles, but it will not result in any new hourly jobs.

The move comes at a time when U.S. new car and truck sales are at an all-time high and investors are watching closely for signs of a possible downturn in the highly-cyclical industry.