Ford Motor Co. today said it plans to spend $1.4 billion creating 500 jobs and upgrading a Detroit-area plant to build 10-speed transmissions for the 2017 F-150 pickup.
Ford plans to spend $1.4 billion on its Livonia Transmission Plant for the new transmission, which will be used in the F-150 Raptor and other versions of the F-150 this fall. It’s the biggest single investment out of the $9 billion Ford committed to its manufacturing operations in the four-year labor contract it signed with the UAW last fall.
Separately, Ford said it will invest $200 million to upgrade its Ohio Assembly Plant for production of Super Duty chassis cab trucks. It said that work will create or retain 150 jobs.
“I am thrilled that through our collective bargaining with Ford we were able to secure a substantial investment for the communities of Southeast Michigan and Northeast Ohio,” Jimmy Settles, the UAW vice president who oversees dealings with Ford, said.
The announcement comes three weeks after Ford revealed plans to spend $1.5 billion building a new small-car plant in Mexico, drawing criticism from presidential candidate Donald Trump and UAW President Dennis Williams. Trump, who has railed against Ford throughout his campaign for expanding output in Mexico, called the new plant “an absolute disgrace.”
“We are proud that Ford employs more hourly workers and builds more vehicles in the United States than any other automaker,” said Joe Hinrichs, Ford president, The Americas. “We are committed to manufacturing in the United States, as we have been for more than 100 years.”
Production of the 10-speed transmission, which was jointly developed with General Motors, will begin in June, Ford said. Michigan economic development officials today approved tax incentives worth $23.7 million for the Livonia Transmission investment.
The UAW agreement calls for Ford to build three new transmissions at the plant and invest a total of $1.8 billion there by 2019. Production of the six-speed transmissions made there now for the Mustang, F-150, Transit and Expedition will continue, Ford said.
GM has announced a $343 million retooling project in Romulus, Mich., to prepare for its version of the 10-speed transmission. The 2017 Chevrolet Camaro ZL1 will be the first to get it, and it will be on eight GM models by 2018, GM’s global product chief Mark Reuss said last month.
FCA engines
In another state announcement, Fiat Chrysler Automobiles plans to invest $74.7 million at its Trenton, Mich., engine plant to build 2.0-liter 4-cylinder engines there starting with the 2018 model year.
FCA's project would retain 245 jobs at its Trenton North engine plant, according to the MEDC. The state said the automaker "could place this anywhere in the NAFTA region, including their current engine facility in Saltillo, (Mexico), where labor rates and logistics are more competitive than the Midwest."
Production of the new engine begins in the third quarter of 2017, the company said. It will replace the 3.6-liter Pentastar V-6, FCA said.
Brian Harlow, vice president of manufacturing for FCA North America, said in a statement: "This investment in our flexible production line at Trenton North will allow us to quickly ramp up North American production of this new fuel-efficient engine."
Crain's Detroit Business, an affiliate of Automotive News, contributed to this report.
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