Ford Authority

Potential Ford Layoffs Would Not Impact Michigan Incentive Package

As Ford Authority reported back in May, Ford is set to receive over $100 million from the state of Michigan for its efforts to retool the automaker’s Detroit area plants, moves that will add around 3,000 jobs. A few weeks later, Michigan lawmakers in the state’s House Appropriations Committee signed off on that incentive package for Ford plants in the state, with the money slated to come from the state’s Strategic Outreach and Attraction Reserve. Ford is also investing $3.7 billion of its own money into these changes, which also include revamping its Ohio and Missouri-based assembly plants. However, it seems as if future salaried Ford layoffs won’t jeopardize the automaker’s ability to receive those Michigan state incentives, according to the Detroit Free Press.

The Free Press analyzed both economic development documents and state law, and determined that thousands of Ford layoffs could occur in the state of Michigan and the automaker would still receive the more than $100 million dollar incentive package, though it does face a couple of requirements in order to do so – Ford must invest over $1 billion of its own money into the project, as well as add at least 3,030 jobs by June 2024.

“Many incentive deals are specific to a certain location (like the five sites that fall under this deal) and have no mention of the firm’s economic activity in the other part of the state. So, Ford wouldn’t be violating the contract by laying off workers in its other Michigan locations,” said Cailin Slattery, professor of economics at the University of California, Berkeley Haas School of Business.

The omission of salaried job cuts from this incentive deal is notable because Ford is reportedly planning on cutting up to 8,000 jobs as it aims to trim $3 billion in costs by 2026. CEO Jim Farley recently addressed this rumor with Ford employees, declining to outright deny the move while also admitting that Ford needs to reduce its structural costs to remain competitive.

We’ll have more on this incentive package soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. David Dickinson

    If you lay people off, you get taxpayer money! This is the kleptocracy we live in. Stickin’ it to the little guy one bad decision at a time.

  2. GaryB

    lousy circumstances. The work doesnt increase, but the burden on the remaining employees does. I remember when my grandpap retired from the mines, they bought him a grand marquis, a rolex, and a miners helmet wall clock. Now a days, people are lucky to choose between a pizza party, cheap cookies, or even cheaper cakes. The only thing we are being competitive with China about is reducing our living and working standards.

    1. Tigger

      Now you’re lucky if you are not escorted out of the building by security when you’re laid off.

  3. John Coviello

    I will say it again, Henry is hopping mad at what Farley is doing to his company !!!!! But, he will also see that FORD will be remembered for what he did creating a company and that he didn’t cause Ford to go OUT OF BUSINESS !!!!!!!!

    1. StevenT8

      Yes, and both Edsel Ford and Lee Iaccoca are spinning like a rotisserie at how bad the Lincoln brand has become the last 20 years. (since Jaguar demanded Lincoln can’t be better than Jaguar) Lincoln, starved of product showing passion and distinction that we want but can only have if buying a competitor brand. Cadillac is true to its heritage which something Lincoln is not allowed to do anymore. What a stunning Celestiq. Sad Lincoln will never compete with the Celestiq. Besides, It’s hard to make a “Ford” cost $300K so it will never happen. Lincoln has lost its way by no fault if itself. Lincoln should be the showcase of technology then filter it down to the lesser Ford brand not the other way around.

  4. Bob

    Cut 8000 jobs to trim 3 billion in costs. In raw numbers that’s $375k each job. You think those 3000 that they hire to fulfill the subsidy will be averaging that? (writing subsidy in this context makes me laugh, but 3% to the bottom line is 3%)
    Whoever crafted this deal is worth his weight in gold.
    And I think California is corrupt….

  5. G O Pee

    The republicon way

  6. hot toddy

    big business is always in bed with big government no matter who is in the white house. Show them the error of their ways with your next new car purchase, which probably won’t be hard with all the broken promises when the so called “order banks” are taking orders they can’t fill. That’s what I did last week with a VW Taos purchase over an Escape.


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