Zacks Investment Research reports that Ford will invest $500 million in Michigan for developing and building batteries for their hybrid and electric vehicles. In return, they have asked the Michigan government for a tax break between $85 to $120 million. Michigan haven’t confirmed whether they’ll give this tax break, which is handy because Ford have indicated that they will look elsewhere if the tax break isn’t given. This investment will create 1000 jobs. Each job will cost at least $85000? Shocking!
Ford have decided that battery development is a key job which needs to be developed in-house. Which is bad news for Delphi, since they currently make Ford’s batteries for them. Just what they needed as they were coming out of bankruptcy. This plant will supply batteries for the Transit Connect EV, the Focus EV and hybrid versions. Ford are choosing to manufacture Lithium Ion batteries instead of Nickel Metal hydride ones. Not only are they smaller and lighter, they can be tuned to increase power to further acceleration. It’s nice to see that Ford are creating new jobs, but as with Nissan and their Leaf production in Tennessee, the amount of tax money per job is phenomenally high. Is it worth it?