Ford investing $1.5 billion in Avon Lake to create 1,800 jobs for electric vehicle production

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Workers of the Ford Motor Co. cheer during a news conference, Thursday, June 2, 2022, in Avon Lake, Ohio. Ford announced it will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models. (AP Photo/David Richard)
Workers of the Ford Motor Co. cheer during a news conference, Thursday, June 2, 2022, in Avon Lake, Ohio. Ford announced it will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models. (AP Photo/David Richard)

Ohio leaders celebrated another significant economic investment Thursday as Ford Motor Co. announced a $1.5 billion plan for electric vehicle production and 1,800 new union jobs in Avon Lake.

Overall, Ford is creating 6,200 new hourly union jobs in Michigan, Ohio and Missouri that offer full health coverage on Day One as part of a new $3.7 billion investment that includes financial support from Michigan and Ohio policymakers.

"We're securing our future together...you don't beat the competition by waiting around. We're moving and moving now,"  Kumar Galhotra, president of Ford Blue, told a cheering crowd in Avon Lake.

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The news came five months after Ohio landed the biggest economic development project in state history, Intel's $20 billion plan to put two chip factories, called fabs, near Columbus.

Ford executives teamed up with Gov. Gretchen Whitmer, a Democrat, for a news conference in Michigan and Gov. Mike DeWine, a Republican, for the celebration at the Ohio Assembly Plant in Avon Lake.

President Joe Biden issued a statement praising the bipartisan work that leads to corporate reinvestment.

Ohio Gov. Mike DeWine speaks during a press conference, Thursday, June 2, 2022, in Avon Lake, Ohio. Ford announced it will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models. (AP Photo/David Richard)
Ohio Gov. Mike DeWine speaks during a press conference, Thursday, June 2, 2022, in Avon Lake, Ohio. Ford announced it will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models. (AP Photo/David Richard)

DeWine noted the ripple impact of new union jobs on the overall economy and the importance of U.S. investment.

The key, however, always has been Ohio's talented workforce, DeWine said. "The controlling factor always is, are the workers there? Are there workers with the skill set? Are there workers who can do the job?"

Ohio policymakers and JobsOhio have offered a grant of $135 million and a job creation credit worth $70 million.

The Ohio Assembly Plant in Avon Lake, west of Cleveland, will assemble an all-new electric commercial vehicle starting mid-decade. An additional 90 jobs and $100 million investment between Lima Engine and Sharonville Transmission plants.

Each job for an automaker in the U.S. creates nearly 11 other positions in industries across the economy, according to the Alliance for Automotive Innovation based on data through 2020.

Kumar Galhotra, president of Ford Blue, the company's division that makes internal combustion vehicles, speaks during a press conference, Thursday, June 2, 2022, in Avon Lake, Ohio. Ford announced it will add 6,200 factory jobs in Michigan, Missouri and Ohio as it prepares to build more electric vehicles and roll out two redesigned combustion-engine models. (AP Photo/David Richard)

"Ford is investing, they are making strategic decisions about the future of mobility, they're leading the way. We've got to compete with the rest of the world to earn their investment here in Michigan. And we won," Whitmer said at the Mackinac Policy Conference on Mackinac Island.

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Bill Ford, executive chair of Ford, said in a news release, "“Ford is America’s number one employer of hourly autoworkers, and this investment only deepens our commitment. I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.”

Billions, not millions

Michigan policymakers have offered Ford a Critical Industry Program grant worth approximately $100 million and property tax exemptions worth nearly $50 million.

In Michigan, a $2 billion investment will result in 3,200 union jobs, including nearly 2,000 jobs throughout three assembly plants to increase production of the all-electric F-150 Lightning pickup truck to 150,000 vehicles per year at the Rouge Electric Vehicle Center in Dearborn, build an all-new Ranger pickup for North America at Michigan Assembly Plant in Wayne and an all-new Mustang coupe at Flat Rock Assembly Plant.

Missouri is getting a $95 million investment and 1,100 union jobs — adding a third shift at Kansas City Assembly Plant in Claycomo to increase production of the Transit commercial van and new E-Transit.

Ford plans to begin plant expansion by the end of this year in Ohio for the new commercial electric vehicle. And while CEO Jim Farley alluded Wednesday to the appeal of building electric vehicles designed specifically for Lyft and Uber use, company officials declined to comment on whether this was related to vehicles used for ride hailing. They said the vehicle would support Ford Pro business customers.

In recent months, Ford, General Motors, Stellantis and other automakers have announced massive investment plans to build and overhaul plants as the industry transitions from gas-powered vehicles to battery-operated vehicles.

For example, Stellantis and Samsung are investing $2.5 billion to create 1,400 jobs in Indiana. GM invested $2.2 billion to retool Factory ZERO in Detroit and Hamtramck before starting production of the 2022 GMC Hummer EV last year. GM had previously announced investments in Michigan, Ohio and Tennessee.

UAW 'essential'

As factories get overhauled to accommodate electric vehicles, which require fewer plant workers, Farley said the company is mindful of its history. His grandfather worked at the Rouge in Dearborn. And while the company initially fought the union, executives often spotlight the UAW now.

Ford says it plans to produce 2 million electric vehicles a year globally by the end of 2026 through Ford Model e while maintaining a lineup of gas-powered vehicles.

Galhotra, who routinely makes a point of crediting factory workers in public and private remarks, said in a statement, "Ford is America’s automaker and our relationship with the UAW is essential to our success."

UAW President Ray Curry said in a statement, "We are always advocating to employers and legislators that union jobs are worth the investment. Ford stepped up to the plate.”

Chuck Browning, UAW vice president and director, Ford Department, praised Ford for going beyond what the union contract requires and providing job security and benefits.

“These unprecedented steps taken by Bill Ford and CEO Jim Farley are both a refreshing and innovative approach to labor relations that delivers great benefit when most needed by our hardworking members," Browning said in a news release.

Ford confirmed Thursday it employs approximately 21,000 workers in Michigan plants, 7,000 in Ohio and 7,000 at the Kansas City Assembly Plant in Claycomo, Missouri. As of late May, Ford employed about 183,000 workers worldwide.

Reporters Edd Pritchard of the Canton Repository and Eric D. Lawrence and Jamie L. Lareau of the Free Press contributed to this report.

This article originally appeared on Akron Beacon Journal: Ohio gets 1,800 jobs, $1.5 billion investment from Ford in Avon Lake

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