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Ford Wants Tax Credits To Make Batteries

Automaker said it could invest up to $500 million in Michigan for the development and production of batteries for hybrid and electric vehicles if it wins state tax credits.

LANSING, Mich. (AP) -- Ford Motor Co. officials are asking Michigan legislators to give the automaker around $120 million in tax credits earmarked for companies that develop batteries for hybrid and electric vehicles.

Ford has been assembling batteries from auto supplier Delphi Corp. in Mexico. It plans to start producing its own battery systems beginning next year.

Nancy Gioia, Ford's director of global electric strategy, told a House committee Wednesday Ford likely would hire 1,000 Michigan workers and invest up to $500 million by 2012 if it consolidates battery assembly in the state.

New Economy and Quality of Life Committee Chairman Ed Clemente says he'd like to get the credits approved by year-end. But he says lawmakers also must balance the needs of schools and programs being cut because of falling revenues.