Ford Motor Company
Earlier today, the second-largest US automaker by 2018 sales volume, Ford Motor Company (F), revealed its plan to invest $850 million in its Flat Rock assembly plant through 2023. This was Ford’s second announcement relating to a production increase and job creation in the United States over the last couple of days, which is expected to please President Trump.
Let’s first take a closer look at the company’s announcement.
Increasing production and creating more jobs
On Wednesday, Ford said in a press release that its $850 million investment in the Flat Rock assembly plant “is part of a $900 million investment in Ford’s operations in southeastern Michigan.” The company targets building the next-generation Mustang and next-generation battery electric vehicles at its Flat Rock plant, adding a second shift. With its $900 million investment, the company aims to create nearly 900 incremental jobs by 2023.
Ford also plans to start producing its first self-driving vehicles in 2021 for commercial transportation services.
Ford’s announcements today come a day after it revealed plans to increase Ford Expedition and Lincoln Navigator production by 20% at its Kentucky Truck Plant in Louisville. The company said it’s creating nearly 550 new jobs to increase production 20% due to rising demand for the Expedition and Navigator.
Ford’s plans could please Trump
Recently, Trump severely criticized the largest US automaker, General Motors (GM), for closing its Ohio plant, and he asked the company to either open it or sell it to another company fast. Ford’s recent announcements could please Trump since it’s in line with the Trump administration’s agenda of creating more jobs in the United States (SPY).
Continue to the next part of this series, where we’ll find out how investors reacted to Ford’s recent announcements.