Ford Receives $55 million in Tax Credits for EV Battery Development

At least one American automotive company is trying to escape the recession through innovation. Ford Motor Company has just been awarded $55 million in incentives from the Michigan Economic Development Corporation.

Michigan Governor Jennifer Granholm announced the award, which will come from refundable tax credits given out to companies in electric vehicle technologies, and advanced battery research in Michigan. Those credits are made possible through the Michigan Advanced Battery Credits, a bill passed by the Michigan House of Representatives in December, and later signed into law by the governor.

Ford plans to use the money to continue their development of "next-generation hybrids, plug-in hybrid electric vehicles and battery electric vehicles." Ford is said to be working on four new electric vehicles for release by 2012. These include a fully electric Ford Transit Connect commercial van, a plug-in hybrid for 2012, and possibly an additional plug-in hybrid.

They have also teamed up with auto tech firm Magna International in the development of an all-new, all-electric passenger vehicle. That car should come out in 2011, with a range of about 100 miles.

Ford exec Nancy Gioia was quoted in the release as saying, "These promising technologies give us the opportunity to transform our transportation and energy future." Gioia runs the sustainable technologies and hybrid vehicles divisions at Ford. Noting that Michigan's battery credits are a first in the nation, she continued to say, "Government support is essential to achieving the potential for electrified vehicles in the future. Michigan's groundbreaking program accelerates our ability to expand and focus our engineering and research efforts here."

Amongst the provisions, the law provides up to $2,000 in credit per battery pack produced, and up to $15 million annually if a minimum of 1,000 full-hybrid and electric vehicles are produced. Another $10 million is allowed for annual cost of battery engineering (capped at $30 million over time), and up to $25 million per year for battery cell production (capped at $100 million).

General Motors has been granted $43 million from the program for their work on batteries to be utilized by the Chevrolet Volt, on the condition they build a battery manufacturing facility in southwestern Michigan. McLaren Performance Technologies (not the same as the McLaren Automotive you know), also received a grant of about $100,000 per year for 10 years.

Press Release

FORD RECEIVES MICHIGAN TAX CREDITS FOR FUTURE ELECTRIC VEHICLES, BATTERY DEVELOPMENT

* Ford receives $55 million incentive in refundable tax credits from Michigan Economic Development Corporation (MEDC) to continue work in electric vehicle and battery development.
* Incentive will help accelerate Ford's recently announced aggressive electrification strategy, designed to bring four electrified vehicles to market by 2012.

DEARBORN, Mich., Feb. 17, 2009 - Ford Motor Company received a $55 million incentive from the Michigan Economic Development Corporation (MEDC) for its work in advanced battery and electrical vehicle development. Ford will receive refundable tax credits through the new Michigan Advanced Battery Credits initiative, announced today by Governor Jennifer Granholm.

The first of its kind in the country, the law provides refundable tax credits to encourage companies to invest in electric vehicle engineering and advanced automotive battery research in Michigan.

"Ford appreciates Michigan's proactive positioning in support of these advanced technologies, which we believe are at the heart of a new generation of vehicles," said Curt Magleby, director, Government Affairs. "Incentives to help concentrate research and engineering related to electric vehicles in Michigan will help position the state to become a leader in this emerging technology."

Approved by the Michigan Economic Growth Authority, the incentive will be used to accelerate Ford's plans to produce next-generation hybrids, plug-in hybrid electric vehicles and battery electric vehicles.

"These promising technologies give us the opportunity to transform our transportation and energy future," said Nancy Gioia, director, Sustainable Mobility Technologies and Hybrid Vehicle Programs. "Government support is essential to achieving the potential for electrified vehicles in the future. Michigan's groundbreaking program accelerates our ability to expand and focus our engineering and research efforts here."

Ford's southeast Michigan operations already are home to some of the most advanced automotive research, technology and engineering development facilities in the world. This incentive will help ensure that research and development at Ford facilities in Michigan will play a key role in further enhancing this new technology.

Ford recently announced an aggressive electrification strategy to bring four new vehicles to market. Ford's electrification strategy involves three types of electrified vehicles - battery electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles - to provide consumers with significant fuel economy improvements and reduced CO2 emissions without compromising their driving experience.

Ford's new electrification strategy will deliver a suite of electrified vehicles to market by 2012, including:

* A full battery commercial Transit Connect van-type commercial vehicle in 2010.
* A full battery electric passenger car in 2011.
* Next-generation hybrid vehicles, including a plug-in version by 2012.

The electrification strategy builds on Ford's vision for bringing affordable technology to millions. It is designed to take advantage of rapid advancements in electrified vehicle technology - particularly Lithium-ion batteries - while leveraging the scale of global vehicle platforms to bring the cost of new technology down.