Ford announced today that it will invest $1.6 billion to upgrade plants in Michigan and Ohio, part of its commitment in the 2015 contract talks with UAW to invest $9 billion in its U.S. manufacturing facilities.
The investment includes $1.4 billion in the Livonia Transmission Plant, to build 10-speed transmissions for the F-150 Raptor and other F-150 models, the company said in a statement. Ford will invest an additional $200 million in the Ohio Assembly Plant to build its Super Duty chassis cab.
In his announcement about the investment, Joe Hinrichs, Ford president for the Americas, said that Ford was “committed to manufacturing in the United States.” The company has more workers in the United States than any other automaker, he said.
Jimmy Settles, UAW vice president, said in a statement that he was “thrilled” that last year’s collective bargaining resulted in a “substantial investment” in the Southeast Michigan and Northeast Ohio communities.
“The men and women of both Livonia Transmission and Ohio Assembly have shown a great commitment to manufacturing quality products, and we look forward to their continued success,” he said.
Livonia Transmission Plant, which employs more than 1,550 workers, builds a six-speed transmission that is used in a number of products, including Mustang, F-150, Transit and Expedition.
Production begins in June for the new 10-speed transmission.
Ford said that 650 jobs will be retained or created with the investment, but did not specify how many of those jobs will be new.
The Ohio Assembly Plant in Avon Lake employs more than 1,650 people. It began building F-350, F-450 and F-550 Super Duty chassis cab configurations earlier this year. The plant also produces Ford F-650 and F-750, which was insourced from Mexico last year, and Ford E-Series cutaway vans and stripped chassis.
Earlier this month, Ford announced plans to build a new small-car plant in Mexico that will create 2,800 jobs there.
Ford wants to “improve the profitability of our small-car lineup,” said Joe Hinrichs, its president of the Americas, when the Mexico plant was announced. UAW President Dennis Williams at the time called the company’s plan “very troubling” and said the investment means creating jobs that “should have been available right here in the U.S.A.”
