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Ford retools Michigan plant to build electric Focus

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Ford announced today that it would invest $550 million to retool and re-engineer its large SUV factory in Wayne, Mich., to begin production of an all-electric Ford Focus BEV (battery electric vehicle) in 2011. Given that this electric car has not yet been announced in concept form, news of the electric Focus and the survival of the Wayne plant comes at a time when Ford’s public relations clout seems to be as important as its product lineup.

The Michigan truck plant is adjacent to the Wayne assembly plant that produces the current Ford Focus. The plants are 10 miles west of the company’s headquarters in Dearborn, Mich. The truck plant was one of two Ford plants that built large Ford Expedition and Lincoln Navigator SUVs -- the other in Kentucky is still operational. In November 2008, when demand for the large SUVs dropped, the Michigan plant went idle for retooling and jobs were lost as an outcome.

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Ford spokesman John Clinard said that although jobs would be created by the new plant, many employees would be consolidated from the existing Wayne plant that produces the current Ford Focus. ‘Our plan to create this new, modern and flexible facility will incorporate employees from the adjacent Wayne assembly plant,’ he said. The new operation will support approximately 3,200 jobs when operations are in full swing at the end of 2010, Clinard said.

It will take $430 million for plant reconstruction and $120 million more for launch and engineering costs. So where is the money coming from? Beyond Ford’s investment, the state of Michigan, Wayne County and the city of Wayne will contribute more than $160 million in tax credits and grants, and the plant will be the state’s first “automotive technology anchor site,” which will mean additional tax incentives for technology suppliers to move in – potentially creating even more jobs.

At the Detroit Auto Show in January, Ford made a general announcement of its plan to create its first all-electric commercial vehicle in 2010 (the Transit Connect commercial vehicle, made in Europe) and another battery electric small car in 2011 (which we now know is the next-generation Focus). They also announced that 2012 would bring next-generation hybrid vehicles and a plug-in hybrid.

-- Joni Gray

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Ford invests $550 million to convert SUV facility to build new Focus for small-car market

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