Post by TonyV on Dec 18, 2009 3:13:10 GMT -5
Legislature approves tax credits for vehicle battery technology
BY CHRIS CHRISTOFF
FREE PRESS STAFF WRITER
The Legislature approved $78 million in tax credits Thursday evening for Ford Motor Co. to develop battery packs for future hybrid and plug-in hybrid vehicles, which the company said will create 1,000 new jobs in Michigan.
That includes moving production of battery packs to the state from a plant in Mexico.
Ford said it plans to invest between $300 million and $500 million to assemble the next-generation hybrid vehicles and lithium ion battery packs at a plant yet to be named.
The tax breaks for Ford in 2012-14 will allow the company to consolidate production of battery power systems in Michigan, said Nancy Gioia, Ford’s director of global electrification.
“This will make Michigan a center of excellence for electrification,” Gioia said.
The legislation also provides $42 million in tax credits for General Motors and Dow Kokam of Midland to engineer battery packs for hybrid vehicles.
The tax credits would be given only if the companies create the number of new jobs required by the legislation. Ford must produce at least 225,000 lithium ion battery packs over three years, and would qualify for additional tax breaks after 2014.
The state previously granted Ford tax credits to develop power systems for all-electric vehicles. But the tax advantage for hybrid batteries is more significant because hybrids will comprise a much larger share of the electric vehicle market, Gioia said.
Hybrid vehicles are powered both by batteries and gasoline engines, such as the Ford Fusion hybrid and Toyota Prius.
Ford currently sells several hybrids, including the Escape SUV and the Fusion and Mercury Milan hybrid sedans introduced earlier this year.
Ford declined to say where in Michigan the assembly of the next generation hybrid and plug-in hybrid vehicles might occur but has said they would be built off the company’s compact car platform.
Previously, Ford announced plans to introduce a battery electric version of its Transit Connect commercial van in 2010, a battery electric Ford Focus compact car in 2011, as well as a next generation hybrid vehicle and a plug-in hybrid vehicle by 2012.
Ford plans to begin building a new version of the Ford Focus compact car late next year at its Michigan Assembly Plant in Wayne and an electric version of the Focus at that plant in 2011.
Ford has already pledged to spend $500 million to retool Michigan Assembly to build the Focus and will receive more than $160 million in local and state tax credits and grants for that project.
BY CHRIS CHRISTOFF
FREE PRESS STAFF WRITER
The Legislature approved $78 million in tax credits Thursday evening for Ford Motor Co. to develop battery packs for future hybrid and plug-in hybrid vehicles, which the company said will create 1,000 new jobs in Michigan.
That includes moving production of battery packs to the state from a plant in Mexico.
Ford said it plans to invest between $300 million and $500 million to assemble the next-generation hybrid vehicles and lithium ion battery packs at a plant yet to be named.
The tax breaks for Ford in 2012-14 will allow the company to consolidate production of battery power systems in Michigan, said Nancy Gioia, Ford’s director of global electrification.
“This will make Michigan a center of excellence for electrification,” Gioia said.
The legislation also provides $42 million in tax credits for General Motors and Dow Kokam of Midland to engineer battery packs for hybrid vehicles.
The tax credits would be given only if the companies create the number of new jobs required by the legislation. Ford must produce at least 225,000 lithium ion battery packs over three years, and would qualify for additional tax breaks after 2014.
The state previously granted Ford tax credits to develop power systems for all-electric vehicles. But the tax advantage for hybrid batteries is more significant because hybrids will comprise a much larger share of the electric vehicle market, Gioia said.
Hybrid vehicles are powered both by batteries and gasoline engines, such as the Ford Fusion hybrid and Toyota Prius.
Ford currently sells several hybrids, including the Escape SUV and the Fusion and Mercury Milan hybrid sedans introduced earlier this year.
Ford declined to say where in Michigan the assembly of the next generation hybrid and plug-in hybrid vehicles might occur but has said they would be built off the company’s compact car platform.
Previously, Ford announced plans to introduce a battery electric version of its Transit Connect commercial van in 2010, a battery electric Ford Focus compact car in 2011, as well as a next generation hybrid vehicle and a plug-in hybrid vehicle by 2012.
Ford plans to begin building a new version of the Ford Focus compact car late next year at its Michigan Assembly Plant in Wayne and an electric version of the Focus at that plant in 2011.
Ford has already pledged to spend $500 million to retool Michigan Assembly to build the Focus and will receive more than $160 million in local and state tax credits and grants for that project.