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$1B Ford Investment Could Secure 56,200 Michigan Jobs

In August, the Michigan Economic Development Corp. approved an incentive package to encourage Ford to make investments of up to $1 billion in Michigan.

In August, Governor Jennifer M. Granholm and Michigan Economic Development Corporation (MEDC) President and CEO James C. Epolito announced an incentive package approved by the MEDC to encourage Ford Motor Company to make new investments of up to $1 billion in Michigan facilities for flexible manufacturing and advanced power train technologies. If approved by the company, the project will retain a total of 56,200 Michigan jobs, including up to 13,740 jobs directly by Ford.

“There is no vision for Michigan’s new economy that does not include Ford cars and trucks designed, engineered, and made in Michigan,” says Gov. Granholm. “The company’s consideration to invest more than $1 billion in its Michigan facilities is a testament to our first-class work force and our pro-business environment. We’ll continue to fight to keep these jobs in Michigan.”

The MEDC approved a Single Business Tax credit valued at more than $151 million over 20 years to win the company’s investment.

“Ford is proud to be part of this great state, and our work to keep Ford’s future a huge part of Michigan’s future underscores our serious commitment to the people and the communities that have helped make this company great for more than a century,” says Mark Fields, Ford’s president of The Americas. “We thank the people of the state of Michigan for their support of the ‘home team’ and for believing in the importance of American auto companies.”

A University of Michigan economic analysis estimates that increased economic activity created by the investment would save an additional 42,460 indirect Michigan jobs in addition to the up to 13,740 retained directly by the company. The project is expected to generate more than $62 billion in personal income for Michigan workers over the life of the tax credit.

“Ford is a cornerstone of Michigan’s economy, with its significant annual investment in research and development and manufacturing presence and $22 billion in purchases from Michigan-based suppliers,” says Epolito. “This reminds the world that Michigan is the automotive place to be and the future of the industry is being shaped right here.”

Ford Motor Company Economic Analysis

Summary Estimates (All estimates in 2006 dollars)

TOTAL JOBS RETAINED 56,200

Direct 13,740
Indirect 42,460

NET POSITIVE STATE REVENUE IMPACT $4,282,570,000
Revenue Foregone 151,236,000
Revenue Gain 4,433,806,000
Average Wage 960
Personal Income Generated Over
Life of the 20-Year Tax Credit Agreement $62,881,940,000