Ford to hire 1,200 workers, pending approval of tax incentives
The Ford logo is displayed on the grill of a new Ford truck November 2, 2009 in Richmond, California. Ford Motor rerported a nearly $1 billion third quarter profit earning $997 million or 29 cents a share compared to a loss of $161 million, or 7 cents a share one year ago.
TEXT OF INTERVIEW
JEREMY HOBSON: Ford just reported its sixth straight quarterly profit, with a 68 percent increase over last quarter. Meanwhile, the company says it will hire 1,200 new workers in Michigan if the state approves tax incentives.
Marketplace's Nancy Marshall Genzer is following this story for us this morning. She joins us now live from Washington. Good morning.
NANCY MARSHALL GENZER: Good morning, Jeremy.
HOBSON: Well tell us about these tax incentives they're talking about.
GENZER: Ford is apparently going to get $400 million in tax relief from Michigan. The Michigan Economic Development Corporation is scheduled to announce the tax breaks today. And Ford says that's incentive enough for it to spend $850 million upgrading at least four plants in Michigan.
HOBSON: And upgrading those plants is going to lead to those jobs we talked about?
GENZER: That's what we're hearing. Ford says it'll hire more than a thousand new workers. The upgrades will allow Ford to make more fuel efficient vehicles. I talked to Gerry Meyers, Jeremy. He's a professor at the University of Michigan and the former CEO of American Motors. He says this is good news, but don't pop the champagne corks just yet.
GERRY MEYERS: The investments are in component plants, not assembly plants, to a great extent. I think it's more business as usual, pulled together, and looks bigger than the meaning really is.
HOBSON: And Nancy, what about GM and Chrysler? Will they be getting any tax deals from the state?
GENZER: Well they're expected to. But as I said earlier there haven't been any formal announcements, we are expecting that later today. The Detroit News is reporting that these incentives we're expecting will lead Chrysler to invest a $1 billion in equipment and tooling. The paper says GM is expected to announce an investment of $152 million. That includes money for its hybrid and electric vehicle production.
HOBSON: Marketplace's Nancy Marshall Genzer in Washington. Thanks Nancy.
GENZER: You're welcome.