LANSING –Senator Ray Basham (D-Taylor) today announced that Ford Motor Company will invest $550 million to convert the Michigan Truck Plant along Michigan Avenue in Wayne into a facility that will focus on building small compact modern cars. The effort is expected to retain 3,200 jobs and generate a total of 17,150 jobs while also increasing state government revenues by $774 million by the year 2021.

“At a time when the auto industry is struggling the most, this new project brings new promise of hope to our state as well as much-needed investment and jobs,” said Sen. Basham. “With new technologies and modern, efficient vehicles, we can begin the transformation of the auto industry and Michigan’s economy.”

Through the Michigan Economic Development Council, the Michigan Economic Growth Authority (MEGA) Board has approved various incentives for Ford Motor Company’s Michigan Assembly Plant project in the City of Wayne, including:

• Retention Employment Tax Credit

Through this tax credit, $123,773,031 will be available for up to $4,700 retained employees at the Michigan Assembly and Wayne Stamping facilities, provided that Ford agrees to retain a minimum of 1,800 jobs by the end of the first year of operations in order to activate the credit.

• Anchor New Jobs Designation

The anchor jobs designation will provide tax incentives to Ford for attracting and influencing customers and suppliers with a critical or unique component to locate in Michigan and connection with the Michigan Assembly facility projects. The incentives will be based on the number of qualified new jobs.

• Large Brownfield MBT Tax Credit

Ford Motor Company has requested up to $30,000,000 to help build and facilitate the project.

• Brownfield Redevelopment Work Plan

The county of Wayne Brownfield Redevelopment Authority has submitted a work plan request for the approval for $6,403,500 in local and school capture for MEGA eligible activities. The MEGA Board also approved an amendment awarding an additional $20 million of tax credits for qualified Plug-In Electric Vehicle Engineering expenses.

This new investment project announced today will convert the Michigan Truck Plant, which previously manufactured large body-on-frame products, into a flexible manufacturing facility that can produce smaller vehicles off a global platform. The facility will receive significant investment in body, paint and final assembly. The new plant will also build the next-generation Ford Focus, including an electric version of the popular car that is expected to debut in 2011.

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