FeedsFord receives $5.9 billion to retool plants, save jobs
Ford Motor Co. just got a little more help in the plan to retool the Michigan Truck Plant.
U.S. Energy Secretary Steven Chu made it official on Tuesday morning: the automaker is one of several companies to receive low-interest loans from the federal government to transform plants into modern facilities that will churn out more fuel efficient vehicles.
Ford will receive about $5.9 billion in loans that will help them refurbish 11 plants in five states, including the Michigan Assembly Plant in the City of Wayne.
“The American innovation machine, when revved up, is without a doubt the best in the world,” he told Ford employees, Michigan politicians and the media during a news conference in Dearborn.
Congressman John Dingell said the news came as a welcome relief both to the automaker and the state in general.
“(This) announcement could not come at a more opportune time, particularly for Ford,” said Dingell. “As automakers struggle to cope with the effects of the ongoing recession, this loan reflects the administration’s praiseworthy dedication to ensuring the vehicles and technologies of the future are manufactured in the United States.”
The loans will be dispersed through 2011 to help fund the transformation of plants to create smaller, more fuel-friendly plants.
Ford will use part of the money to retool two truck plants—including the former Michigan Truck Plant in Wayne, which was closed last year and renamed the Michigan Assembly Plant earlier this year.
Representatives of the automaker said they will increase the fuel efficiency of more than a dozen popular models, including the Focus, Escape, Taurus and F-150. The new Focus will be constructed in Wayne, which further cements the identity of the town as the small car capital of the world for Ford Motor.
“It’s good news for us,” said Wayne City Manager John Zech. “When Ford does well, we do well. When they don’t, we don’t.”
In fact, the temporary closure of the plant was one of factors that contributed to a reduced revenue stream that saw city officials sheer $4 million from the $20 million annual budget.
The city and state have previously provided the automaker with tax incentives to help offset the costs of retooling the plants, as well.
Information provided by the energy department indicates that the loans will help retain nearly 35,000 jobs in Michigan, Illinois, Kentucky, Missouri and Ohio.
The $25 billion program is designed to help automakers and suppliers meet tough new fuel economy standards.
“With this money, Ford will be able to continue its work on quality vehicles, such as the Fusion Hybrid and Fiesta, which offer consumers fuel savings and reduce our country’s dependence on foreign oil,” said Dingell.
“Importantly, Ford’s loan will aid in creating new green jobs in Michigan, something of which our state is dire need.”
