(May 24, 2010) YPSILANTI, Mich.,  – Ford Motor Company – moving to create a center of excellence in Michigan for vehicle electrification – today announced it is investing $135 million to design, engineer and produce key components for the company’s next-generation hybrid-electric vehicles.

Ford engineers in Dearborn will design the battery packs while engineers in Livonia will design electric-drive transaxles for the next-generation hybrids, based on Ford’s global C- and CD-car platforms, which go into production in North America in 2012.

“Electrified vehicles are a key part of our plan to offer a full lineup of green vehicles, and we are building a center of excellence in the U.S., here in Michigan, to keep Ford on the cutting edge,” said Mark Fields, Ford’s president of The Americas. “Today’s announcement is another important step in our larger strategy to launch a family of hybrids, plug-in hybrids and full electric vehicles around the world.”

Ford’s Rawsonville Plant in Ypsilanti, Mich., will assemble the battery packs beginning in 2012, moving work to Michigan that is currently performed in Mexico by a supplier. Ford’s Van Dyke Transmission Plant in Sterling Heights, Mich., will build the electric drive transaxles beginning in 2012 from a supplier facility in Japan. Ford is adding a combined 170 jobs at the Rawsonville and Van Dyke facilities to build these key components.

“I am proud of the tremendous success of the UAW and Ford in working together to keep good manufacturing jobs in the U.S.,” said Bob King, UAW vice president, National Ford Department. “We are pleased that both Rawsonville and Van Dyke Transmission have been selected to produce these important components for Ford's next generation hybrid-electric vehicles. These new products will help the community and local economy in Michigan by creating 170 new direct jobs at Ford and hundreds of other supporting jobs in the community, while helping to reduce emissions that cause air pollution and global warming.”

Ford’s creation of a center of excellence for vehicle electrification in Michigan now includes the design and manufacture of electrified key components as well as total vehicle manufacturing for hybrids, plug-in hybrids and battery-electric vehicles. Ford is adding more than 50 engineers to work on electrification as we bring these technologies in-house. By physically bringing research, engineering and manufacturing closer together, Ford, its suppliers, universities and related industries can drive both innovation and job growth in this evolving form of transportation.

“We're working hard to make Michigan the center for electrified vehicle technology and production,” said Michigan Gov. Jennifer M. Granholm. “Today’s announcement by Ford represents another step forward in moving Michigan from the Rust Belt to the Green Belt by investing in green technology and creating green jobs.”

Ford’s in-house team will design and engineer the advanced lithium-ion battery systems powering its next-generation hybrid vehicles. These battery systems will be designed specifically for the company’s next-generation hybrids, including the new global CD-car platform hybrid and the new global C-car platform hybrid, which will be built at Ford’s Michigan Assembly Plant in 2012.