Ford Wants Michigan Plant for Batteries

As electric cars become more and more important, Ford Motor Co is considering to continue investing in this sector. The amount, somewhere between $300 and $500 million, is to be directed towards Michigan assembly plants. But due to Ford’s lack of money, this investment hangs on whether or not Michigan will grant millions in tax credits.

The plants would be used to assemble lithium ion batteries. At this moment, Ford does not build its own batteries, but uses ones built by supplier Delphi Holdings LLP in Mexico. The batteries are used for the Ford Fusion and the Mercury Milan hybrid sedans, but Ford’s range of electric vehicles is expanding.

According to Derrick Kuzak, Ford's global product development chief, if this operation was brought to the state it would create about 1,000 jobs for Americans living in Michigan. Ford said it needs $85 million credit from 2012 to 2014, in order to create an advanced battery pack, with the possibility of another $35 million beyond 2014. This investment would cover the production of future hybrid and plug-in hybrid.

"In the capital-constrained world that we live in and [with] the need to have a sustainable business going forward, we think Michigan is a great site to work with," said Nancy Gioia, Ford's director of global electric strategy. "If we can't make it work here, we are committed to our product plans and to identify the best total business solution."