Ford invests $550 million to retool Michigan plant for Focus, all-electric car
by Sebastian Blanco on May 6th 2009 at 1:14PM 
We're changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles. As customers move to more fuel-efficient vehicles, we'll be there with more of the products they really want.
Part of the $550 million investment comes from the $160 million in tax help that the state of Michigan, Wayne County and the city of Wayne have offered for the plant. To see a short history of the plant, from 1957 until today, explained with pretty pictures, click here. There are a lot more details after the jump.
Gallery: Michigan Assembly Plant History
[Source: Ford]
PRESS RELEASE:
FACT SHEET: MICHIGAN ASSEMBLY PLANT
Plant Information
- Plant name: Michigan Assembly Plant
- Location: Wayne, Mich.
- Employment:
- o Wayne Assembly Plant: Hourly – 1,910; Salaried – 100
- o Wayne Integrated Stamping: Hourly – 1,270; Salaried – 55
- Products: All-new Focus (2010), Battery-electric Focus (2011)
- Year opened: 1957
- Site size in acres: 140
- Plant size in square feet: 2,866,000
- Product history: Station wagon bodies for Wayne Assembly Plant; Ford Bronco, Ford F-Series, Ford Expedition and Lincoln Navigator
* Ford Motor Company will invest $550 million to bring the production of the all-new Ford Focus and a battery-electric version of the Focus to the plant.
* Key to the changeover at the plant is a flexible body-shop operation, which uses reprogrammable tooling, standardized equipment in the paint shop and common-build sequence in final assembly.
* The plant is designed to be efficient, with synchronous material flow, and ergonomically friendly, with a skillet conveyor system designed to promote ease of movement for employees.
FORD INVESTS $550 MILLION TO BUILD NEW GLOBAL SMALL CARS, ELECTRIC VEHICLE AT MICHIGAN PLANT
* Ford invests $550 million to transform Michigan Assembly Plant (formerly Michigan Truck Plant) from a large SUV factory into a modern, flexible small car plant
* Production for the North American market of the new global Ford Focus begins next year followed by production in 2011 of a battery-electric Focus, helping Ford meet its promise of delivering four new electric vehicles in the U.S. by 2012
* The investment will support approximately 3,200 jobs at Michigan Assembly
* Ford and United Auto Workers are developing a framework of new and leading-edge operating practices at the plant that will ensure high quality and maximum efficiency
* The state of Michigan and local governments provided tax incentives and grants that enabled the investment in Michigan Assembly, which will be designated as the state's first automotive technology anchor site.
Supporting Materials
WAYNE, Mich., May 6, 2009 – Ford Motor Company said today it is investing $550 million to transform its Michigan Assembly Plant into a lean, green and flexible manufacturing complex that will build Ford's next-generation Focus global small car along with a new battery-electric version of the Focus for the North American market.
The plant, formerly the production site for Ford Expedition and Lincoln Navigators SUVs, is one of three North American light truck plants Ford is retooling to build fuel-efficient global small cars in the coming years. The new Focus will begin rolling off the line next year and the battery-electric version of the Focus – Ford's first all-electric passenger car – debuts in 2011.
As part of the retooling, Ford will consolidate its operations from Wayne Assembly Plant. When production launches in 2010, approximately 3,200 employees will be building the new Focus at Michigan Assembly Plant. At the plant, Ford and United Auto Workers are developing modern new operating practices to ensure high quality and even greater efficiency.
"The transformation of Michigan Assembly Plant embodies the larger transformation under way at Ford," said Ford President and CEO Alan Mulally. "This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles. It is about leveraging our expertise and vehicle platforms around the world and partnering with the UAW to deliver best-in-class global small cars. It is about skilled and motivated teams working together in new ways to create the future of automobile manufacturing in the United States."
The reinvention of Michigan Assembly, once one of the world's most profitable auto plants during the SUV boom of the late 1990s, is rooted in the fundamental strategic shift by Ford to leverage its global assets to bring six world-class small cars to the American market by the end of 2012. To produce the vehicles, Ford is converting three truck and SUV plants to car plants – Michigan Assembly, Cuautitlan Assembly in Mexico, which begins building the new Fiesta subcompact early next year; and Louisville (Ky.) Assembly, which will be converted to produce small vehicles from Ford's global Focus platform beginning in 2011.
The new Focus is being developed in Europe – where Ford is a leader in small cars – off a new global C-car platform. Over time, the new platform will be the basis for more than 2 million units annually around the world, including Focus and other derivatives, allowing Ford to leverage economies of scale to improve investment efficiency.
The zero-emission Focus battery-electric vehicle, which is being developed in partnership with Magna International, features a high-voltage electric motor powered by a high capacity Lithium Ion battery pack and charged by plugging in to a 110-volt or 220-volt outlet. The vehicle is one part of a larger strategy Ford announced in January to develop electric vehicles for North America quickly and affordably by leveraging its global platform capability.
In addition to the Focus battery electric vehicle, Ford is collaborating with Smith Electric to sell a Transit Connect battery electric commercial vehicle for North America in 2010. Ford's product plans also include a next-generation hybrid vehicle in 2012 and a plug-in hybrid vehicle in 2012.
"We're changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles," said Mark Fields, Ford's president of The Americas. "As customers move to more fuel-efficient vehicles, we'll be there with more of the products they really want."
Investing in American manufacturing
The $550 million investment in Michigan Assembly includes more than $430 million in manufacturing investment at the site, as well as $120 million for launch and engineering costs. In addition, Ford will be making significant investment in supplier tooling to support the plant.
The state of Michigan, Wayne County and the city of Wayne contributed more than $160 million in tax credits and grants to support Ford's expansion opportunities. Key elements include:
* Tax incentives based on job retention at the site;
* A Brownfield tax incentive for economic rehabilitation of the site;
* Tax incentives to support integration of advanced batteries into new product development programs and
* Local property tax incentives for new investments at the site
Michigan Assembly Plant will be designated as the state's first automotive technology anchor site. This designation will support Ford's efforts by providing additional tax incentives to locate advanced technology suppliers in Michigan, related to future automotive technology applications.
"Ford is investing in both the future of the American auto industry and the state of Michigan by bringing together world-class products, advanced technology applications and strong partnerships with the UAW to build the next generation of vehicles that will help end our nation's dependence on foreign oil," Granholm said. "In these challenging economic times, we applaud and appreciate Ford's commitment to Michigan and to our talented workforce."
Michigan Assembly Transformation
At the heart of the plant's manufacturing transformation is a flexible body shop operation, which uses reprogrammable tooling in the body shop, standardized equipment in the paint shop and a common-build sequence in final assembly, enabling production of multiple models in the same plant.
Aiding in the implementation of flexible manufacturing is Ford's industry-leading virtual manufacturing technology. In the virtual world, engineers and plant operators evaluate tooling and product interfaces before costly installations are made on the plant floor. This method of collaboration improves launch quality and enables speed of execution.
In a flexible body shop, at least 80 percent of the robotic equipment can be programmed to weld various sized vehicles. This "non-product specific" equipment gives the body shop its flexibility and provides more efficient use of the facility.
The plant also will employ an efficient, synchronous material flow, where the material will move in kits to each operator, providing employees with the tools they need in the sequence they will need them. The plant features an integrated stamping facility, which allows the stamping and welding of all large sheet-metal parts on-site, ensuring maximum quality and minimum overhead.
Modern Work Rules
Along with the physical transformation at Michigan Assembly Plant, the UAW and Ford are working on a framework of new and class-leading operating practices that will enable the plant to operate at a high level of productivity while producing best-in-class quality products in a safe work environment.
As part of this framework, Ford and the UAW are committed to establishing a strong, progressive culture at Michigan Assembly Plant that is based on teamwork, joint problem solving and continuous improvement.
"The UAW is a key partner in enabling us to build these world-class vehicles competitively in the United States," said Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs. "This agreement will allow the work force to build on their quality commitment while improving productivity at the plant."
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About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 205,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.
Reader Comments (Page 1 of 1)
Tyler Durden 2:40AM (5/07/2009)
Now this is a Ford I could commit to drive lately.
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Rahul 2:16PM (5/06/2009)
Fordis finally coming out with a small car. It will be the best thing to happen got people who have always believed in the American dream. After GM and Chrysler, Ford is the only left standing high in the automotive world today.
Rahul
Indian Car Advisor (Carazoo.com)
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Kris 4:10PM (5/06/2009)
Actually, Ford's been making small cars for years (the Focus and before that the Escort, not to mention the Festiva). This news is really about a) how the new Focus will be a global vehicle, b) the importance of the manufacturing investment in Michigan, and c) the new battery electric version of the Focus coming in 2011.
Some people chide Ford for previously placing its emphasis on trucks and SUVs, but the fact is there's always been more money in those segments than small cars (in America anyway). The fact that Ford is transforming a former SUV plant into a small car plant is a positive thing. How profitable it'll be depends, in part, on the American consumer -- will they buy small cars? With gas prices stable, it remains to be seen if super-sized Americans will want to downsize anymore than they have already.
meme 3:17PM (5/06/2009)
GM and Ford are kind of like the old parable of the Grasshopper and the Ant. The Ant struggles hard to harvest and store enough food for the coming winter, while the Grasshopper fritters its time away on harvesting and selling a bunch of identical grass dishes at a time when everyone else has switched over to eating lambsquarter, and then belatedly starts making lambsquarter dishes, but then shows up on national television and calls lambsquarter tasteless and makes fun of the caterpillars that eat lambsquarter, and then has to fly to Washington DC to beg the other animals in the kingdom to bail him out with extra food for the winter. And then winter strikes and the Grasshopper has to lay off half of his employees and sell off the part of his burrow or wherever it is that grasshoppers live.
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LaughingMan 3:24PM (5/06/2009)
To be fair, Ford itself has been heavily invested in the truck business for much of the last few decades. They practically invented the SUV.
It's been small strategic decisions that differentiate the two companies, really. Ford is much further along with hybrid drive technology for example.
warrens 6:49PM (5/06/2009)
I go by that factory on a regular basis... what a change that will be to have interesting cars rather than boring trucks popping out of the place.
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Luke 4:45PM (5/06/2009)
Does anyone have any details on the estimated sticker price for the electric Focus? I really want that car!
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Chris M 6:12PM (5/06/2009)
Too soon to say, it is two years away and we don't know for sure what will happen to battery prices when several automakers start delivering their new EVs and PHEVs.
The cost also depends on what range they try to achieve. I'm hoping they'll have the option of extra battery capacity for those who want it, and smaller less expensive batteries for those who can do just fine with a limited range.
Randy C. 5:27PM (5/06/2009)
Finally somebody in Detroit developed some brains. You can save a lot of time and money by building an electric car on existing platform. Instead of a whole new car from the ground up where every piece has to be invented.
EV converters have been doing it for years, take an existing car, remove the ICE and support systems, drop in an electric motor and batteries. The rest of the car is unchanged and will still meet most safety regulations like the air bags still work.
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Chris M 6:18PM (5/06/2009)
There are advantages to both the "custom" and the "conversion" approach. Both have been used successfully.
Conversion can be less expensive, with less development costs and more shared components.
Custom designs can be optimized with lower weight and better aerodynamics, thus better performance. It can also be easier to fit batteries and other components in a custom design, with the batteries down low and near the center of the car for better weight distribution.
Mick 4:47PM (5/07/2009)
Ford has a Better Idea. Yeah, electric Focus (BEV) . I learned to drive on a Ford (1968 XL 390CID 4 BBL). I now own a 2008 Ranger FX4 and the wife drives a 96 Ford Windstar. If Ford could make a 7 seater Electric Windstar with a turbine range extender they would have a winner that would outshine the Chrysler minivan. The turbine could run on different fuels ( as Obama has proposed ). Imagine a tubine range extender providing electric power to a Lithium battery pack, with Ultra caps for quick acceleration. The tubine could run on HHO ( hydrogen ) and produce water vapour for exhaust. Now I'm getting excited!
Mick in Canada
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Chris M 5:58PM (5/07/2009)
How would you produce the "HHO" gas? Producing enough electrolysis gas onboard to run a gas turbine would take a lot of electricity - about 14 times more than the total output of that gas turbine! That's a BIG step backwards!
If produced elsewhere, then how do you store it? There is a strict limit on how much you can compress that gas before it spontaneously ignites and turns into steam, that would leave you with a low pressure tank the size of a blimp. Fine, if you'd rather fly...
The volume could be reduced by 1/3 by storing only the H2 portion and releasing the O2 back into the air, and then the H2 could be compressed up to 10,000 psi to use a smaller (but rather expensive!) storage tank. Even so, the range per tank would be less than the battery range - not very useful as a "range extender".
Or you could do what so many others have done, use small low power electrolyzer to produce a little bit of "HHO" to use along with the regular fuel, and pretend it gets you a big improvement in fuel economy.
Mick 2:36AM (5/11/2009)
Use wind and solar power for Hydrogen generators.
Tidal and ocean currents could be other ‘green’ sources.
HHO produced by Oxy-hydrogen generators…Google EPOCH (Korea)
The HHO/ Hydrogen could be stored in carbon fiber tanks. ( source ..Lincoln, Nebraska ).
I don't know if HHO would spontaneously ignite if stored under pressure ..Korea still exist right?
A video I once saw, had a carbon fiber tank mounted in a compact car. Hydrogen was used to facilitate the combustion of other fuels, such as turpines derived from citrus waste, in an ICE ( internal combustion engine ).
In 1993, Volvo had the ECC-1 prototype on the road…It was electric drive with a Capstone
Turbine as a range extender. The first one ran on unleaded gas, later, another ran on diesel and still another ran on methanol. Turbines can run on many fuels and are more efficient than ICE. The Capstone Turbine has unique “Air Bearings” and they run 24/7 on oilrig platforms powered by flaregas.
Another interesting concept is the AFS Trinity vehicle.
See… http://www.afstrinity.com/video.htm
It appears that the ICE was coupled to a generator to act as a range extender. The question I have is; What RPM does the ICE run at, to produce enough power to run the vehicle?
This leads me to the question, Can a turbine ( with air bearings ) run at a greatly reduced RPM? (say about 10 or 20 Thousand ).
Naysayers abound. I once heard a fellow say that electric cars would never work in a wet climate such the Pacific North West. I guess he had forgotten that cars use alternators.
Remember: The earth is flat and the center of the universe.
Mick
Chris M 7:05PM (6/14/2009)
The combination of water electrolysis, compression for storage, and H2 fuel cell is about 24% efficient at storing electricity, but the combination of charger and batteries is 85% efficient. Going the "hydrogen via electrolysis" route would require 3x more of that expensive solar/wind/tidal energy, leaving less available for other uses, such as displacing fossil fuels. Efficiency does matter. BTW, the combination of electrolysis, compression, and IC engine is only 7% efficient, and running a gas turbine on electrolysis gas isn't much better. Why would anyone want to throw away more than 90% of your limited supply of renewable derived energy?
That "HHO" gas, actually a mixture of 2 parts H2 and 1 part O2, is at the ideal ratio for easiest ignition, and compression will easily ignite it - see "Diesel engine" and "Homogenous Charge Compression Ignition (HCCI) engines" for examples of how that works. The existence of Korea has nothing to do with it.
Storing just the H2 without the O2 reduces the volume, and H2 cannot ignite without O2, so pure H2 can be compressed up to 10,000 psi and stored in expensive carbon fiber tanks. However, even at that pressure, the amount that can be stored in a reasonably sized tank is still very limited, which in turn limits the range. For example, a Prius, modified to run on H2 at a cost of $70,000 with carbon fiber fuel tank and added turbocharger had a range of only 80 miles - with hybrid efficiency!
Yes, I've heard of Capstone micro-turbines and AFS Trinity. Neither one has anything to do with H2 fuel or "HHO".
Remember, it was the naysayers who said the Earth wasn't flat and wasn't at the center of the universe.
LOU 2:40AM (6/14/2009)
This is a great idea they need to jv with investors to take this to the next level..
Regards. LOU
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LOU D 1:28PM (7/25/2009)
I think the need to start building and stop talking, me and my company have a great idea to take this to the next level of green advancmects..
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Lou 5:21AM (8/27/2009)
I am working on a green project and hold full summary for all ideas of advance technology and future investments for Mexico. I think i would like a JV and feed back on my progress..
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