Ford, Michigan Cut $750 Million in Public Support from Marshall

While the site of the Ford EV battery factory in Marshall isn't going anywhere, some money from the manufacturer and the state of Michigan is. According to a report from the Detroit Free Press, the two groups are cutting out $750 million of public money from related projects.

The ebbs and flows of the new EV market appear to be to blame. This move is consistent with a November announcement that did impact the number of jobs coming to Marshall, as well as Ford's investment in the city, for the same reasons.

“We are nimbly adjusting our manufacturing operations to match evolving customer demand and the Michigan Strategic Fund board is revising its incentive offers accordingly," Tony Reinhart, Ford's director of state and local government affairs, said in a statement, according to the Detroit Free Press.

While this is certainly frustrating for the city of Marshall, the good news is that the jobs coming to the area don't appear to be directly impacted negatively by the latest cut in funds. In fact, jobs at the EV battery plant will pay more.

According to the Detroit Free Press, the average wage of those working at the plant will jump from $21.70 to $25.50. The starting hourly pay is also jumping from $20 per hour to $25.

The Marshall EV battery plant is still expected to begin operation in 2026. While the initial plan was 2,500 jobs producing enough batteries to supply 400,000 vehicles, the plant is expected to bring in 1,700 jobs capable of producing enough batteries for 230,000 vehicles.

The 1,700 jobs are crucial for Ford, as that would give them a $141 million grant provided they also invest $2.5 million.

Naturally, another shift in the Ford/Marshall story is sure to strengthen the concerns of locals who have been against the idea since the start. The over-anticipation of the growth of EV sales certainly doesn't help either.

However, a wait-and-see outlook could ease some of the stress of the situation. Once residents take up the jobs and production gets underway, the value of the entire project may begin to make more sense to those against it.