Ford, FCA tap Michigan tax incentives to add jobs

Ford, FCA tap Michigan tax incentives to add jobs

“​The company also evaluated existing facilities outside of Michigan for this project, including Mexico where they recently opened a new state-of-the-art transmission facility,” the MEDC staff wrote to board members who approved both measures unanimously Tuesday. “Incentive assistance was necessary to ensure the project move forward in Michigan.”

Today, the Livonia plant builds 6-speed, rear-wheel drive transmissions. Ford will invest a total of $1.4 billion to upgrade equipment necessary to continue this production as well as add a new transmission to the facility in the future, according to state documents. It’s expected to be a 10-speed, rear-wheel drive transmission that will be used in the F-150 Raptor and other rear-wheel drive vehicles, according to state documents.

Ford’s investment is part the deal inked last fall under a new four-year contract with the UAW. As part of that contract, Ford pledged it would invest $9 billion in the U.S. and create or retain 8,500 jobs.

The state economic incentive for Fiat Chrysler Automobiles falls under the same state program. The smaller investment by the company relative to Ford is only expected to preserve jobs in Michigan, not create new ones.

In return for its five-year assessment exemption worth more than $770,000, Fiat Chrysler said it would make a nearly $75 million investment at one of its facilities in Trenton. The project is expected to retain up to 245 total jobs, according to the company.

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