Nance: Ford Signs Memorandum Preserving Claycomo Jobs

At left: State Senator Ridgeway, Governor Nixon, Ziad Ojakli, Ford Motor Company, State Representatives Nolte and Nance.

“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.” –Martin Luther King, Jr.

Ford Motor Company signs a memorandum of understanding in which the company commits to invest at least $400 million to bring a next-generation production line to its Kansas City Assembly Plant

Our work week began on a high note Tuesday with Ford announcing they will invest $400 million in retooling the Claycomo Plant. The plant will add an unidentified vehicle assembly line to replace the Ford Escape line. That line is moving to Louisville, Ky., after the first of 2012. Ford said manufacturing of the Escape will continue in Kansas City until the Kentucky operation is ready. The Ford F-150 pickup is also built here, but the incentive was used to guarantee that another line would be placed here instead of elsewhere.

Many are reporting Ford will receive $150 million from the State of Missouri over a ten year period for this investment. That is incorrect. They will qualify for up to $100 million in tax incentives over ten years after they invest the $400 million and keep their current 3750 workers for ten years along with adding new employees. The incentives would come from an exemption to employee state withholding tax. The tax incentives could also extend to other auto-parts manufacturers in Missouri. This affects our seat plants (Magna), suppliers (Henkel), and other small businesses that supply the automaker.

We passed HB 45 this week which will reward small businesses that hire new employees and pay the average county wage.

Governor Nixon gave the State of the State Address last night in the House Chambers. He spoke on job creation, making government more efficient, and balancing the budget without raising taxes. At the same time, the governors’ recommended 2012 budget was presented online on the governor’s webpage. http://oa.mo.gov/bp/

There will be much discussion on the governor’s recommendations over the next several months as the budget must pass both the House and the Senate.