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Sept 27 (Reuters) – Ford Motor Co (FN) said on Tuesday it would invest $700 million and add 500 jobs at its Kentucky plant to support production of its new 2023 model year F-Series Super Duty truck.
The No. 2 US automaker and its South Korean battery partner SK Innovation (096770.KS) said in September 2021 they will invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the United States. The companies said they will invest $5.8 billion in Kentucky, and $5.6 billion in Tennessee. The Kentucky JV will create approximately 5,000 jobs.
The Kentucky Economic Development Finance Authority (KEDFA) on Tuesday approved an additional project to an existing agreement with Ford that could provide up to $430 million in cumulative tax incentives based on the company’s total cumulative investment. $3.65 billion with an annual job target requirement of up to 12,500 over the term of the agreement.
If Ford meets annual targets, it can retain a portion of the new tax revenue it generates by claiming eligible incentives against its income tax liability and/or assessments of salary
Ford employs more than 12,000 people in Kentucky.
Ford said its F-Series truck franchise will generate nearly $40 billion in revenue by 2021 — about one-third of the company’s global automotive revenue last year.
Through August, Ford F-Series US truck sales fell 11% to 420,969, a third of total sales. Of the total F-Series sales, 6,842 were electric F-150 Lightning trucks.
Reporting by David Shepardson; Editing by Andrea Ricci
Our Standards: The Thomson Reuters Trust Principles.
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