Ford Motor Co F CEO Jim Farley on Wednesday responded to Michigan Governor Gretchen Whitmer’s comments that the state was not given a "real opportunity" for the automaker’s new factories centered around electric vehicles.
What Happened: Farley said on Twitter that the Michigan site didn't meet the criteria and that the automaker “loves” the state where it has invested $7 billion since 2016.
Farley said Kentucky and Tennessee offered unique sites that were large and where construction could begin within a short time besides offering other benefits.
The Ford CEO pointed out he was aware that the state and the energy supplier DTE would have made competitive bids if the criteria had been met.
Whitmer, and another state executive who was cited in the Detriot News report that Farley was responding to, said Michigan was not given the “real opportunity” and that it was not “actively involved” in the automaker’s new plans.
Why It Matters: Ford along with its South Korean battery partner SK Innovation on Monday revealed plans to spend $11.4 billion to construct three battery plants and an assembly plant for F-series electric trucks in Tennessee and Kentucky, the largest investment in the Dearborn, Michigan-based automaker’s history.
The electricity charges at Michigan are much higher than those of Tennessee's and Kentucky's prices, a key factor that put Ford's home state on a disadvantage, as per the Detroit News report.
Price Action: Ford stock closed marginally lower at $14.30 on Wednesday.
Photo: Courtesy of Ford
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