In an effort to expand vehicle production, Ford Motor Co. (NYSE:F) said Thursday it plans to add 6,200 union manufacturing jobs and invest $3.7 billion into plants in Michigan, Ohio, and Missouri.
More specifically, Ford said $2.3 billion of the total investment would be spent on EVs, part of the $50 billion in EV spending through 2026 it had previously outlined.
Ford, whose shares rose 2.4% in afternoon trading, said the investment would also include $1 billion allocated for providing added benefits such as better food, parking, and EV charging stations for employees.
The investments come more than a year before Ford is set to negotiate a new four-year contract with United Auto Workers.
And while the timing is unusual, Ford seems to move quickly to secure the workers it needs amid the tight labor market.
Though many investors do not yet see Ford as part of the EV club, it would be surprising to note how much the automaker is investing in electric vehicles and the quantities it is selling.
As the company continues to see strong demand for its latest vehicles, Ford Motor said Thursday that its U.S. sales fell just 4.5% in May from a year earlier, a smaller decline than in recent months.
Both the E-Transit segment and the Mustang Mach-E recorded their best sales month ever, with sales of the SUV climbing 166% year over year. Moreover, Ford said more than 75% of customers who have reserved the all-electric F-150 Lightning pickup trucks are new to Ford.
In May, EV sales rose 222% to 6,254 models.
"While the global semiconductor chip shortage remains an issue for the industry, our inventory continues to turn at record rates, with nearly 50 percent of our retail sales coming from previously placed orders. Our electric vehicle sales, with the addition of F-150 Lightning, increased 222% - growing at almost four times the rate of the industry." - Vice President of Sales, Distr. & Trucks, Andrew Frick
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