Ford Invests $550 Million in Small-Car Production Facility

Ford, one the members of the Detroit 3 group, is making another step towards refreshing the product lineup by investing $550 million in the Michigan Assembly Plant. Basically, what Ford is aiming to do is to transform this particular facility, previously known as the Michigan Truck Plant, from a large SUV factory into a new production center for small cars especially addressed to North America.

The new factory will not only help Ford concentrate more on small cars and revamp its product range but also support approximately 3,200 jobs at Michigan Assembly. Furthermore, the state of Michigan and local governments agreed to provide tax incentives to support the investment, Ford said in a release.

“The transformation of Michigan Assembly Plant embodies the larger transformation under way at Ford,” said Ford President and CEO Alan Mulally.

“This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles. It is about leveraging our expertise and vehicle platforms around the world and partnering with the UAW to deliver best-in-class global small cars. It is about skilled and motivated teams working together in new ways to create the future of automobile manufacturing in the United States.”

The plant will be the first to manufacture the electric Ford Focus - expected to go on sale in 2011 - as well as next-generation hybrid vehicle in 2012 and a plug-in hybrid vehicle to be launched during the same year.

As part of its electric plans, Ford also plans to launch a Transit Connect battery electric commercial vehicle for North America in 2010 in partnership with Smith Electric.