News Story

Michigan House committee approves $120M more for Ford Marshall site

Taxpayer tab for Ford’s Blue Oval Battery Park is north of $1.5 billion

The Michigan House Appropriations Committee approved Tuesday a $120.3 million legislative transfer toward preparations for Ford Motor Company’s upcoming plant in Marshall, BlueOval Battery Park.

A local group, the Marshall Area Economic Development Alliance, will be granted the funds if the Senate Appropriations Committee grants its approval.

The request for Legislative Transfer 2023-4 explains how the funds would be used:

This state investment would support land acquisition, site preparation, water and wastewater upgrades, and other necessary public infrastructure improvements at the strategic Marshall mega-site, where the Ford Motor Company’s new electric vehicle (EV) battery manufacturing facility, BlueOval Battery Park, is proposed to be located.

As The Detroit News reports, “Ford's total incentives for the $3.5 billion project amount to about $1.6 billion in state and local taxpayer aid once local and state tax incentives are taken into consideration.”

Because the funds were already appropriated to the Michigan Strategic Site Readiness Program, a corporate welfare effort meant to prepare sites, only a legislative transfer was required, not a vote of the full legislature. 

For legislative transfers, approval comes from the House and Senate appropriations committees, not the full House and Senate. This means that only about one-third of lawmakers have a say in the matter.

Legislative Transfer 2023-4 passed the House committee in an 18-11 vote Tuesday. The roll call vote is pictured below:


The Senate Appropriations Committee needs to approve the transfer for it to take effect. The committee will meet Wednesday morning at 9 a.m.

That meeting has no official agenda, but Legislative Transfer 2023-4 and three others await approval. 

Last week, the U.S. Department of Energy announced $9.2 billion in loans to Ford for three upcoming electric vehicle battery facilities, two in Kentucky and one in Tenneseee. Despite that, Ford is still shedding jobs. Reports say 1,000 layoffs are coming.

Last year, Michigan lawmakers approved $100 million for Ford to hire 3,030 factory workers. Two months later, Ford laid off 3,000 white-collar and contract workers.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

World Economic Forum seeks 75% reduction in car ownership

Michigan’s partner in the U.S. Centre for Advanced Manufacturing seeks ‘vehicle access regulations’

A World Economic Forum white paper published last month supports a vision where three in every four vehicles is removed from the road by 2050.

Last year, World Economic Forum and Automation Alley, in Troy, collaborated to create the U.S. Centre for Advanced Manufacturing. Why is Detroit, the one-time king of the American auto industry, partnering with a group so at odds with the way people in Michigan live and work?

People in Michigan build and drive cars. That’s not a bad thing. The people at the World Economic Forum feel otherwise. The attitudes and policy positions of Michigan’s partner are consistently anti-car, anti-growth, and anti-worker.

When will the rubber meet the road?

The two are in obvious conflict: a world with fewer cars, and an advanced manufacturing center. That’s until you read the fine print on what’s entailed in “advanced manufacturing,” or what World Economic Forum founder Klaus Schwab calls the “Fourth Industrial Revolution.”

This is a world with fewer manufacturing jobs, and workplace where people who work with their hands are devalued. “Dull, dirty and dangerous” jobs would be eliminated. Brainworkers and co-bots, or co-working robots, will take it from there.

The World Economic Forum put this all on paper in 2019. The partnership for advanced manufacturing was created three years later, at a cost of $6 million taxpayer dollars.

It was odd enough that Detroit, once the manufacturer to the world, was partnering with a Swiss nonprofit.

Related reading: If you were essential in 2020, you might be ‘useless’ in 2023

The May 2023 paper is called “The Urban Mobility Scorecard Tool: Benchmarking the Transition to Sustainable Urban Mobility,” and was produced in collaboration with Visa. The future it envisions is one with “vehicle access regulations.”

While projecting that global car ownership could reach 2 billion by 2050, the paper sets a goal much lower: 500 million. In the forum’s perfect world, three in every four vehicles expected to exist in 2050 would not.

Throughout, the paper treats private car ownership as the culprit for society’s woes and collective solutions as the answer. Climate change demands nothing less, the paper argues:

By 2050, almost 70% of the world’s population will live in urban areas, swelling the size of towns and cities by 2.5 billion people. Over the same period, demand for urban travel is predicted to double. On the current trajectory, that would add 4.6 billion tons of carbon dioxide to the atmosphere every year by mid-century. Such a scenario is at odds with both the Paris Agreement on climate change and a vision of cities as healthy, sustainable and successful places to live.

The paper advocates for electrification, or the transition away from gas engines to electric vehicles. It’s a goal Michigan’s leaders share: Gov. Gretchen Whitmer believes the state needs the infrastructure for 2 million EVs by 2030.

That’s not enough for the World Economic Forum. It wants fewer cars on the road, too. There can never be too much progress.

“Today, passenger vehicles cause over half of urban air pollution, which led to an estimated 1.8 million excess deaths in 2019 and nearly 2 million cases of asthma in children,” the paper reads.

If growth is not the plan for the auto industry, what is? We can’t very well wonder why Michigan’s college graduates leave, when the paths to a viable life narrow by the year.

If Michigan is not a manufacturing powerhouse, what is it? You might not be asking these questions. Perhaps you’re close enough to retirement that it doesn’t matter. Your high schooler is asking, though. And the answers aren’t good.

“The cities of the future need to move more people with fewer, cleaner vehicles,” reads the paper’s foreword.

The future envisioned by the World Economic Forum is hostile to all the things that make Detroit go.

James David Dickson is managing editor of Michigan Capitol Confidential. Email him at dickson@mackinac.org.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.