The Ford Motor Co. wins an incentive package of USD 101 million in Michigan

The Ford Motor Company got approval for an incentive package worth USD 101 million from the legislators of the Michigan State. The package was approved to allow Ford to launch a new project which would create 3030 jobs for the residents of Michigan. Furthermore, the project would also generate USD 1.16 billion through investments in manufacturing units spread across Michigan.

The incentive is funded by the taxpayer’s money and is conditional. Ford can claim the incentive only if it meets the job targets that it has committed. The incentive would be paid in increments every time the specified targets are met.

The approval of the Senate Appropriations Committee was the last step after which Ford could get the money. Last week, Ford announced its plans to invest USD 3.7 billion in establishing manufacturing units. These units would be spread across Ohio, Michigan and Missouri, creating 6300 new employment opportunities in the Midwest.


Ford’s director of economic development, Gabby Bruno, said that Public-Private Partnerships were essential to allow Michigan to be at the forefront of automotive manufacturing. He stated that new investments would enable his company to double up the production of the all-electric truck. The electric truck, called F-150 Lightning, is manufactured at Dearborn.

The incentive money would be funded by the Strategic Outreach and Attraction Reserve Fund, which Michigan created in December. This fund was created to attract and retain lucrative businesses. Earlier this year, Michigan had also approved a USD 666 million package for General Motors.

A Richmond Republican and State Representative, Jim Yaroch, was concerned about these multiple packages doled out to automakers. He stated his concern during the House Appropriations Committee meeting on 15th June 2022. He said that Michigan pays enormous packages to Ford, GM, Chrysler and large automakers to stay in Michigan. He asked if it has come down to paying such big companies to stay to sustain the Michigan economy. However, the House Committee approved the incentive package before the Senate could do so.