News Story

Michigan gives Ford $100 million for EV jobs, then Ford cuts 8,000 jobs to fund EVs

In June, lawmakers sent Ford $100 million; in July, reports of mass layoffs

When Bloomberg News reported that Ford Motor Company was cutting 8,000 jobs, so as to fund its transition to electric vehicles, the Dearborn automaker didn't deny the report. It took the diffident approach, declining to comment on "speculation."

That was a strange reaction on Ford's part. Given that Michigan lawmakers just approved a $100 million legislative transfer to Ford in June, a deal that "requires the creation of at least 3,030 jobs in the state," one would think Ford would be eager to correct inaccuracies if the report were not true, or explain itself if it is.

Legislative transfers only require passage by Michigan's House and Senate appropriations committees, not the entire legislature. Nor do these appropriations require the governor's signature. So only a fraction of the 148 lawmakers who represent Michigan had a voice in the $100 million subsidy.

The Bloomberg report does offer a sliver of hope: "The plan has not yet been finalized and details could still change."

For Michigan's sake, the plan had better change.

When the $100 million incentive was considered by the Senate Appropriations Committee, Wayne County Chief Administrative Officer Khalil Rahal, Mayor Mark Hammond of Flat Rock, Wayne Mayor John Rhaesa, and Livonia Mayor Maureen Miller Brosnan all wrote letters of support, touting the benefits to their local economies. In reading their letters, it's clear all believed lawmakers were supporting economic growth, not funding mass layoffs.




Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.