With $1 billion going into its electric vehicle problem, Ford Chairman Bill Ford hopes to keep Michigan the "Motor Capital."
Ford Motor Co. plans to invest another $450 million in its electric vehicle, on top of an earlier, $550 million investment. The move, the company claims, will help it create as many as 1,000 new jobs in Michigan.
Among other things, the automaker will relocate lithium-ion battery pack production from Mexico to Michigan. The company plans to roll out at least two battery-electric vehicles, or BEVs, over the next two years, and also plans to launch a plug-in hybrid model by 2012.
“It’s really important to me that the state of Michigan maintains its status as the motor capital,” said Ford Chairman Bill Ford, following a news conference at the North American International Auto Show, in Detroit.
Ford announced that the Michigan Assembly Plant, in the Detroit suburb of Wayne, will become its new battery vehicle production center. The facility, which only a few years ago produced trucks, is being converted to assemble the next-generation 2011 Ford Focus. The new compact shares its C-car platform with the automaker’s upcoming battery vehicles.
Ford has confirmed that it will launch a battery-electric version of its new Transit Connect van – which on Monday was named North American Truck of the Year – followed by a BEV version of the Focus. Meanwhile, electric vehicle chief Nancy Gioia hinted that the automaker’s first plug-in hybrid will be based off the platform used in Ford’s Escape crossover vehicle. It will have a range of up to 30 miles on battery power, she noted, and then be able to continue driving on gasoline power.
In all, Ford has confirmed it will invest a total of $1 billion to develop a line of electric vehicles of one form or another. Engineering and production of those products – along with the various new components needed to make them work – is expected to create 1,000 new jobs in unemployment plagued Michigan.
“Our industry is at the intersection of three critical global issues – the economy, energy and the environment,” said Chairman Ford. “The winning companies will be those that address these issues with vehicle that are also exciting and fun to drive, without compromises.”
Ford made its announcement on a stand in Detroit’s Cobo Hall just 100 feet from where the auto show debuted a new project, dubbed Electric Avenue. A wide range of automakers are displaying their battery technology, from major brands like Nissan to small start-ups like Tesla Motors.
Some experts believe the so-called “electrification” of the auto industry will create opportunities for the next Henry Ford. That’s something his great-grandson admitted is on his mind.
“I’m worried about (the competition) every day,” said the Ford chairman.