$3.5B of CAPEX, 2500 industrial jobs, coming to south central Michigan. Because the Gov of Virginia did not want that in his state.
Ford EV battery plant on Marshall Michigan megasite gets $1B in incentives | Bridge Michigan.
Michigan will give Ford Motor Company just over $1 billion in incentives — including a $210 million grant and a waiver of property taxes on hundreds of rural acres between Marshall and Battle Creek — to support the building of a $3.5 billion battery facility that is promised to employ at least 2,500 people when it opens in 2026…
Michigan will provide a $210 million grant toward the project, after a vote on Monday afternoon by the Michigan Strategic Fund, the public funding arm of the Michigan Economic Development Council. The MSF board unanimously approved the grant, along with creating a 15-year renaissance zone that will allow Ford to run the plant essentially tax-free.
The plant is partially owned by a Chinese company with ties to the Communist Party. The Gov was afraid of giving ‘incentives” to the commies.
Meanwhile he’s totally in favor of data centers, even though they are ruining neighborhoods.
Material I have read says the plant is to be 100% Ford owned and operated, with the staff being Ford employees. Federal law requires EV components to be US made to qualify for government subsidies.
How many people do data centers employ, vs a manufacturing plant? As DB2 pointed out, the Shiny business model is to throw piles of money at the “JC”, so that the workers can be taxed. Some endeavors are more labor intensive as others.
OK, thanks for that. I have read that it is a “partnership” with the large Chinese company, but elsewhere that it is completely owned by Ford. I don’t now how that works, but whatever…
In other news, the stand down on the F-150 production is apparently due to a fire in a single truck on company property prior to shipment (or so the company is saying.) They are resuming production.
Last news I saw said that they extended the production pause for another 10 days till Feb 24.
I’d guess that they had to structure the deal differently than a simple partnership for two reasons:
- To avoid bad PR.
- To still be eligible for various govt funds/tax credits.
Instead of a straight partnership where China gets part of the profits, they will probably send China a portion of the profits via licensing fees or similar.
Right again. I misunderstood what I read this morning, or mis-remembered it. Anyway, thanks for the correction.