Ford invests $1.2B in Michigan plants

President Trump applauds investments in works since 2015.

DETROIT — Ford Motor Co. is investing $1.2 billion in three Michigan facilities, including an engine plant where it plans to add 130 jobs.

President Donald Trump, who has pressured automakers to invest more and create jobs in the U.S., applauded the move Tuesday in an early morning tweet.

“Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!,” Trump tweeted hours ahead of the announcement.

The investments were in the works well before Trump took office, however. Ford announced plans to upgrade some of its Michigan plants in November 2015 as part of a new contract with the United Auto Workers union.

Ford Americas President Joe Hinrichs said the company told the White House about the investments Tuesday morning. Hinrichs said it’s not unusual for the company to reach out to state and national political leaders before such an announcement.

Hinrichs said Tuesday’s announcement was timed to a state meeting where officials were expected to approve tax incentives for Ford. The automaker expects to receive $30 million in tax abatements and other incentives over 15 years.

Ford will spend $850 million to upgrade the Michigan Assembly Plant next year to build the Ford Ranger midsize pickup and Ford Bronco SUV. Ford plans to build the Ranger starting at the end of 2018 and the Bronco starting in 2020.

The suburban Detroit plant currently makes small cars, which are moving to a plant in Mexico. Trump has need led Ford and other automakers about plans tomove small car production to Mexico.

Amid slowing sales of smaller vehicles, Ford did scrap plans for a brand new plant in Mexico, but will continue to build small cars at an existing facility there.