Tuesday, January 18, 2011

Ford gets tax breaks, will invest $400 million in Kansas City Assembly Plant

Posted by Justin Kendall on Tue, Jan 18, 2011 at 2:00 PM

click to enlarge The F-150 is getting a new roomy.
  • The F-150 is getting a new roomy.

Remember last month, when the reports came out that Ford's Kansas

City Assembly Plant would be getting a new vehicle to produce? The

deal is finally done.

Ford announced Tuesday that it will invest $400 million in upgrades for

the plant to accommodate production of the new vehicle line. And here's

a biggie: 3,750 full-time employees will get to keep their jobs. To quote "Stone Cold" Steve Austin, oh, hell yeah!



The $400 million will go toward putting in a new body shop, new tools

and other upgrades.


"This investment and promise of a new vehicle to be built in Kansas City

reinforces Ford's commitment to U.S. manufacturing and American jobs,"

said Mark Fields, Ford president of the Americas, in a statement.

"Investing in our plants, products and people is critical to Ford's

ability to compete with the best in the business. Ford is committed to

doing everything it takes to work with its partners, including the

United Auto Workers, to remain competitive."



Of course, this didn't come without tax breaks, courtesy of the state of Missouri.

"Today's announcement ensures that next-generation vehicles will be

built right here in Missouri, by the best workforce in the country,"

Missouri Gov. Jay Nixon said in a statement. "Last year, we came

together to pass the Missouri Manufacturing Jobs Act to help our state

compete for the production jobs of the future. That hard work paid off.

For thousands of employees at Ford's Claycomo plant, and thousands more

at suppliers across Missouri, this news is a big win. We'll be building

the vehicles of the future right here in the Show-Me State."



There was a lot of knuckle gnawing when Ford announced that the Ford

Escape wouldn't be made at the Kansas City Assembly Plant anymore. That

is

going to Louisville, Kentucky, at the end of the year. Workers were left making F-150 pickup trucks.



Last

month, a Ford spokeswoman told us that the

new vehicle line was

contingent on the automaker and the state

of Missouri reaching a deal on tax incentives --

something the two have been negotiating for a while

At the time, Kelli Felker, Ford's broadcast communications

manager, told us: "We

do have new product in mind for Kansas City and we are committed to

continuing to work together with all of our stakeholders, including the

state of Missouri, as we move closer to making it a reality."

Now it is a reality.

H/T: Kansas City Business Journal.

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