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Michigan Initiatives brings you coverage of the latest news and events mounting the next great surge in state economic development. Through this coverage, MI will provide some imperative "connective tissue" between employers, business coalitions, economic development groups, academic institutions and government officials. By reporting on the robust efforts of these individuals and organizations, MI hopes to enhance and accelerate the pace of change toward new heights in prosperity and quality of life in our state.

Monday, May 10, 2010

Ford advances battery pack production

Ford's better idea to invest in Michigan by consolidating car and hybrid battery pack production has been followed by a letter to employees at the firm's Rawsonville Plant in Ypsilanti Township, revealing that a facility has finally been chosen, according to a report from RealEngineer.com.

Ford made their plans known during the 2010 Auto Show in Detroit but didn’t reveal any specific details concerning a possible $450 million investment. Speculation was that the firm awaited action from government officials eager to bring skilled and green jobs to the state. The Michigan Economic Growth Authority subsequently approved $188 million in tax breaks to help Ford set up hybrid battery pack operations.

The Rawsonville Components Plant has a long history with Ford dating back to the 1950s. It employed more than 2,600 people in the 1980s and currently employs 780. Analysts say the shift to green technology may be because items the plant produces like carbon canisters and starters are losing money for the company.

According to RealEngineer.com, the letter sent to plant employees doesn’t contain many details but does confirm that they will supply “hybrid battery packs to the Michigan Assembly Plant.” Ford and the UAW are said to be still hammering out details such as production scheduling and staffing issues. There isn’t any word yet on the number of new jobs for the plant, but the Detroit Free Press estimates as many as 1,000 new positions may be added statewide because of Ford’s $450 million investment.

The facility selection is welcome news in Yipsilanti, which was set to lose two more auto plants this year, including GM’s powertrain facility.

Analysts say Ford’s move may have been tied to the tax breaks offered by the state but they are also listening to their customers. In 2009, overall hybrid sales were down 11% but Ford saw a 67% increase in their hybrid sales over 2008.

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