Ford Motor Company will be pumping in $1.45 billion in two of its factories in Detroit in a bid to boost its electric, autonomous and SUV line of vehicles. Alongside, the US carmaker said that the investment will also create 3,000 jobs in these two facilities.
The US automaker has been increasingly investing in electric vehicles in a bid to catch up in the race, as other companies try to make a shift to an electric line-up. Moreover, a decline in the sales of passenger cars in the United States has seen most automakers boost their line-up of crossovers, pick-ups and sports utility vehicles.
Ford on the fast track
Ford said that it will invest around $750 million in its Michigan Assembly Plant in Detroit suburb of Wayne. The investment will be made with the aim of manufacturing its Ranger and Bronco sports utility vehicles and pickup trucks. Around 2,700 jobs will be created at this facility over the next three years.
Another 300 jobs will be created at its facility in Dearborn, where the company intends to invest $700 million in new manufacturing equipment and tooling to support the production of its electrified version of its F-150 truck, which includes both all-electric and hybrid versions. The hiring wills start next year. "Ford is proud to be America's number one producer of vehicles and the largest employer of UAW-represented autoworkers," said Joe Hinrichs, Ford's president, Automotive, according to Area Development.
Investment part of Ford's revival strategy
An increasing number of automakers are trying to switch to electric vehicles, which has seen them make hefty investment in research and development of technology. Moreover, demand for passenger cars have been shrinking in the United Sates for the past few years. This has seen many companies focusing more on the production of SUVs and pickups.
Ford too don't want to lag in the race and has been aggressively investing in this direction. Ford, which is the second largest U.S. carmaker, had earlier said that it would invest $11 billion over the next few years as part of its revival plan that will see around 40 new fully electric and hybrid vehicles getting added to its line up by 2022. The F-150 is the top-selling vehicle in the U.S. and has been generating maximum profits for Ford. Understandably, investing in its Dearborn facility to support production of its F-150 series of vehicles makes sense for Ford.