Ford To Invest $850M In Fuel-Efficient Vehicles

DETROIT (AP) — Ford Motor Co. will invest $850 million between 2011 and 2013 to develop and build more fuel-efficient vehicles.

The automaker said Monday it will invest the money in Michigan, where unemployment is 13 percent. Ford said it will expand its manufacturing and engineering operations, supporting up to 1,200 new jobs.

About 900 of the new jobs will be hourly positions in Michigan factories and the remaining 300 will be engineering jobs. The company said state tax breaks will support the project, but did not put a value on the incentives.

Among other projects, Ford will invest in new, fuel-efficient six-speed transmissions. The investment builds on the $950 million the company previously announced it will spend in Michigan to transform a plant from making SUVs to fuel efficient cars.