Dive Brief:
- Ford Motor Company is investing $1.2 billion in three Michigan auto plants in the run-up to production of new SUV models and investment in self-driving technology, The Detroit News reported.
- The auto giant plans to invest $850 million to retool a Wayne, MI, plant for truck and SUV manufacturing, $150 million to increase the size of an engine plant in Romeo, MI, and $200 million for data center construction at its Flat Rock, MI, facility. The SUV and engine-plant construction work should start in 2018 in order to meet demand of 2019 and 2020 model production, but work on the Flat Rock data center should begin this year.
- Ford's investment was $350 million more than anticipated as a result of negotiations with the United Auto Workers. The UAW contract commits the company to investing a minimum of $9 billion in U.S. plants and factories through the end of 2019.
Dive Insight:
In April 2016, Ford announced plans to spend another $1.2 billion on a new and modernized complex in Dearborn, MI. The 10-year plan would see its current offices, which are comprised of almost 70 different buildings, converted into a 7.5-million-square-foot, research and development complex. Ford officials said the new development would provide 300% more office and meeting areas for employees.
A new research and development facility, the company said, would be net-zero, and its new 700,000-square-foot design center would be the campus "centerpiece." Ford also said it would embark on energy-efficient retrofits of existing buildings, as well as some renovations at Ford World Headquarters and a brand new building for its Ford Motor Credit operations.
Construction in the manufacturing sector is booming this year. Dodge Data & Analytics predicted in its 2017 Dodge Construction Outlook that manufacturing starts will increase by 7%, or 62 million square feet.
