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Ford is looking to invest up to $500 million to support its electric vehicle program, but it’s asking the state of Michigan for some assistance. If Michigan lawmakers expand an existing incentive program and give Ford $85 million in tax breaks, the company says it will will develop and assemble battery packs for a new generation of hybrid vehicles in Michigan.
In addition to developing new battery packs in Michigan, Ford will also manufacture in Michigan a new hybrid and plug-in hybrid vehicle based on the upcoming Ford Focus. In total, Ford says it will create about 1000 new jobs if Michigan legislators are open to the idea of the tax incentives.
“It promotes Michigan’s competitiveness,” said Nancy Gioia, director of Ford’s global electrification programs. “It strengthens Michigan’s advanced technology manufacturing base. It really is an engine for economic growth.”
Ford’s terms are merely an expansion on tax breaks Michigan lawmakers set last year. The state authorized tax credits for high-capacity lithium-ion battery pack assembly, and Ford is asking for lawmakers to expand the program to include lower capacity batteries currently used in hybrid vehicles.
Ford is specifically asking for $85 million in tax credits from that program through 2014, and an additional $35 million beyond 2014 if the lithium-ion battery packs are assembled in Michigan.
Source: The Detroit News
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