Sept 27 (Reuters) – Ford Motor Co (F.N) mentioned Tuesday it’ll make investments $700 million and add 500 jobs at its Kentucky plant to help manufacturing of its new 2023 mannequin yr F-Sequence Tremendous Responsibility truck.
The No. 2 U.S. automaker and its South Korean battery accomplice SK Innovation (096770.KS) mentioned in September 2021 they’d make investments $11.4 billion to construct an electrical F-150 meeting plant and three battery vegetation in america. The businesses mentioned they’d make investments $5.8 billion in Kentucky, and $5.6 billion in Tennessee. The Kentucky JV will create about 5,000 jobs.
The Kentucky Financial Growth Finance Authority (KEDFA) on Tuesday authorised a supplemental challenge to an present settlement with Ford that may present as much as $430 million in cumulative tax incentives based mostly on the corporate’s complete cumulative funding of $3.65 billion with an annual job goal requirement of as much as 12,500 over the time period of the settlement.
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If Ford meets annual targets, it might probably hold a portion of latest tax income it generates by claiming eligible incentives in opposition to its earnings tax legal responsibility and/or wage assessments.
Ford employs greater than 12,000 individuals in Kentucky.
Ford mentioned its F-Sequence truck franchise generated almost $40 billion in income in 2021 — almost one-third of the corporate’s world automotive income final yr.
Through August, Ford F-Sequence U.S. truck gross sales are down 11% to 420,969, a 3rd of complete gross sales. Of the overall F-Sequence gross sales, 6,842 had been electrical F-150 Lightning vans.
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Reporting by David Shepardson; Modifying by Andrea Ricci
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