Editor's note: A previous version of this story misstated the remaining amount in the Good Jobs for Michigan tax capture program. The correct figure now appears.
Ford Motor Co. plans to add 3,000 jobs at two assembly plants in southeastern Michigan, the automaker said Tuesday.
Ford told state economic development officials that it will invest nearly $1.5 billion in the Michigan Assembly and Dearborn Truck plants for the upcoming Bronco SUV, electrified versions of the F-150 pickup and a modification center that will convert hybrids into autonomous vehicles.
"This would be the first center of its kind for the company and is expected to drive synergies with its existing AV research functions in Dearborn and Detroit," the Michigan Economic Development Corp., which approved Ford's requests for about $35.3 million in incentives, said in a memo explaining the projects.
Ford's new contract with the UAW, ratified in November, alluded to the assembly plant renovations, though it wasn't known how many jobs would result. The incentive request said employment at Michigan Assembly would double, to about 5,400 workers, while Dearborn Truck would add about 300 jobs.
Ford told the state it would spend $767 million at Michigan Assembly to install machinery and equipment for the Bronco launch and a Ranger/Bronco modification center in 2020. It indicated that more upfitting equipment likely would be added in 2021 and 2022.
At Dearborn Truck, Ford said it would spend invest $696 million in equipment and tooling to support production of hybrid and electric F-150s. The company said it also plans to assemble battery cells into packs for the F-150 in Dearborn and make additional investments in stamping and powertrain production for the electrified pickups.
"The UAW is proud of Ford’s commitment to manufacturing in the United States and in Michigan,” UAW President Rory Gamble said in a statement. “This is a direct result of the 2019 collective bargaining process, providing additional jobs – and job security – for UAW members in Southeast Michigan.”
The incentives approved Tuesday include $26 million of the remaining $31.6 million in the Good Jobs for Michigan tax capture program, which goes away at the end of this month. It's the same program that awarded Fiat Chrysler Automobiles up to $105 million for creating 6,350 jobs at an assembly plant being built in Detroit and other area plants being expanded.
At the same time, the state said Ford has agreed to give up $12 million in previously approved incentives for expansions at its Romeo Engine and Flat Rock Assembly plants that did not happen as planned. Ford is closing Romeo Engine under its UAW contract and shifted 650 jobs from Flat Rock to other plants when it eliminated one of two daily production shifts this year.
Ford in May said it planned to put an AV production center somewhere in the Detroit area, altering previous plans to build the facility near Flat Rock.
The state said Ford "could locate its AV modification center closer to where the base vehicle is being manufactured in Mexico, where labor costs are lower, but is looking to focus its advanced technology capabilities here in Michigan."
The automaker remains on track to launch self-driving vehicles for commercial use in 2021. Ford envisions using the yet-to-be revealed hybrids to deliver packages, groceries and other goods.
The automaker is testing AV deployment in Miami; Austin, Texas; and Washington, D.C., through partner Argo AI.
Chad Livengood of Crain's Detroit Business contributed to this report.