Ford to spend $866m on Michigan plants

The timing for the announcement couldn't have come at a better time for Ford Motor Company or the state of Michigan. Just days before the North American International Auto Show opens to the public in Detroit, Ford's President of the Americas Mark Fields announced that the company will invest $866 million into four Ford Motor Company manufacturing facilities in southeastern Michigan.

Planned investments include $130 million in Wayne Assembly, $320 million in the Van Dyke transmission facility in Sterling Heights, $88 million in the Livonia transmission plant, and an additional $320 million in Dearborn Assembly, home of the F-150.

In what some saw as a desperate but necessary measure, Ford raised about $23 billion from loans against company assets to fund the restructuring of the company and plans to go through $17 billion in cash over the next three years positioning Ford Motor Company to be to once again be profitable by 2009.

The announcement is some sorely needed good news for Michigan, where employment cuts in the automotive industry have contributed to one of the highest unemployment rates in the country.

[Source: Automotive News - Sub. Req.]

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