Ford to Create Thousands of Factory Jobs, Invest $3.7 Billion in EV, Gas-Engine Production

Some of these investment plans were previously negotiated and disclosed as part of the company’s 2019 labor agreement with the United Auto Workers union. Ford currently has about 55,000 UAW-represented hourly workers in the U.S.

As part of the workforce expansion, the Dearborn, Mich., auto maker said it plans to convert 3,000 temporary workers to full time, a significant workforce shift that comes in advance of the next round of labor negotiations with the UAW set for 2023. Additionally, all hourly employees will receive healthcare benefits on their first day of work, Ford said.

Companies across many industries are competing in a tight labor market. The Labor Department on Wednesday said U.S. job openings remained close to record levels in April, and workers continued to quit at an elevated rate. The hot jobs market is driving up wages at a historically high rate and contributing to the highest inflation in four decades.

Ford’s workforce additions come as supply-chain issues have at times stalled production for the auto maker. Some Ford plants have shut down for days or a week, affecting manufacturing of Ford’s trademark vehicles, including the top-selling F-150 pickup truck.

The company has said it plans to produce two million electric vehicles a year globally by 2026.

Ford has cleaved its conventional gas-engine business from its electric vehicle operations, a major restructuring that marked a divergence from competitors, such as

Stellantis

NV, that say they plan to keep these divisions together. The $3.7 billion investment would support both sides of the company, Ford said.

Ford beat out EV competitors with the April launch of the F-150 Lightning, an electric version of its iconic gas-engine pickup. Vehicles from

General Motors Co.

and Stellantis trail—GM’s electric Silverado pickup is expected to be available in about a year, and Stellantis’s Ram is targeted for a 2024 rollout.

The $1.5 billion investment at Ford’s Ohio assembly plant will support production of an EV commercial vehicle starting mid-decade, the company said. A $95 million investment in its Kansas City plant will increase production of the Transit, Ford’s commercial van, as well the E-Transit electric van.

Ford said its investment will also include $1 billion allocated for providing perks such as better food, parking and EV charging stations for employees. The move comes as auto executives across the industry have been open about struggles to attract and retain workers.

Kumar Galhotra,

president of Ford Blue, the company’s gas-engine division, said that the car company needed to lock in plans for U.S. factories now rather than wait until negotiations with the union next year.

“It is all driven by our product plans and our ambition to accelerate electrification,” Mr. Galhotra said of adding jobs.

The auto maker said the $3.7 billion investment includes $2 billion and 3,200 union jobs in Michigan, a boost for the Great Lakes state after other auto makers have invested in manufacturing centers in the South.

Last year, Ford shared plans to build two battery factories in Kentucky and a third in western Tennessee, as well as a new truck factory—an $11.4 billion investment with collaborator

SK Innovation,

a South Korean battery maker. Stellantis recently shared a $2.5 billion plan to build a battery plant in Indiana to support electric-vehicle production.

Foreign auto makers are also increasing investment outside of Michigan.

Hyundai Motor Group

said last month that it plans to build a $5.5 billion EV manufacturing complex in Georgia.

Toyota Motor Corp.

previously disclosed plans to build a battery plant in North Carolina.

GM has recently invested in electric-vehicle production in the Great Lakes region. The car maker shared plans to convert a Detroit factory into an EV production center, as well as build a battery-cell plant, earlier this year.

Write to Nora Eckert at [email protected]

Some of these investment plans were previously negotiated and disclosed as part of the company’s 2019 labor agreement with the United Auto Workers union. Ford currently has about 55,000 UAW-represented hourly workers in the U.S.

As part of the workforce expansion, the Dearborn, Mich., auto maker said it plans to convert 3,000 temporary workers to full time, a significant workforce shift that comes in advance of the next round of labor negotiations with the UAW set for 2023. Additionally, all hourly employees will receive healthcare benefits on their first day of work, Ford said.

Companies across many industries are competing in a tight labor market. The Labor Department on Wednesday said U.S. job openings remained close to record levels in April, and workers continued to quit at an elevated rate. The hot jobs market is driving up wages at a historically high rate and contributing to the highest inflation in four decades.

Ford’s workforce additions come as supply-chain issues have at times stalled production for the auto maker. Some Ford plants have shut down for days or a week, affecting manufacturing of Ford’s trademark vehicles, including the top-selling F-150 pickup truck.

The company has said it plans to produce two million electric vehicles a year globally by 2026.

Ford has cleaved its conventional gas-engine business from its electric vehicle operations, a major restructuring that marked a divergence from competitors, such as

Stellantis

NV, that say they plan to keep these divisions together. The $3.7 billion investment would support both sides of the company, Ford said.

Ford beat out EV competitors with the April launch of the F-150 Lightning, an electric version of its iconic gas-engine pickup. Vehicles from

General Motors Co.

and Stellantis trail—GM’s electric Silverado pickup is expected to be available in about a year, and Stellantis’s Ram is targeted for a 2024 rollout.

The $1.5 billion investment at Ford’s Ohio assembly plant will support production of an EV commercial vehicle starting mid-decade, the company said. A $95 million investment in its Kansas City plant will increase production of the Transit, Ford’s commercial van, as well the E-Transit electric van.

Ford said its investment will also include $1 billion allocated for providing perks such as better food, parking and EV charging stations for employees. The move comes as auto executives across the industry have been open about struggles to attract and retain workers.

Kumar Galhotra,

president of Ford Blue, the company’s gas-engine division, said that the car company needed to lock in plans for U.S. factories now rather than wait until negotiations with the union next year.

“It is all driven by our product plans and our ambition to accelerate electrification,” Mr. Galhotra said of adding jobs.

The auto maker said the $3.7 billion investment includes $2 billion and 3,200 union jobs in Michigan, a boost for the Great Lakes state after other auto makers have invested in manufacturing centers in the South.

Last year, Ford shared plans to build two battery factories in Kentucky and a third in western Tennessee, as well as a new truck factory—an $11.4 billion investment with collaborator

SK Innovation,

a South Korean battery maker. Stellantis recently shared a $2.5 billion plan to build a battery plant in Indiana to support electric-vehicle production.

Foreign auto makers are also increasing investment outside of Michigan.

Hyundai Motor Group

said last month that it plans to build a $5.5 billion EV manufacturing complex in Georgia.

Toyota Motor Corp.

previously disclosed plans to build a battery plant in North Carolina.

GM has recently invested in electric-vehicle production in the Great Lakes region. The car maker shared plans to convert a Detroit factory into an EV production center, as well as build a battery-cell plant, earlier this year.

Write to Nora Eckert at [email protected]