DETROIT- Ford Motor Co. announced plans Oct. 25 to invest an additional $850 million in Michigan between 2011 and 2013 as part of the company's commitment to upgrade its facilities in the state and further improve its vehicle fuel economy. The investment is also expected to result in 1,200 new full-time positions in manufacturing and engineering operations in Michigan by 2013.

Ford is making the Michigan investment commitment after working with officials on a new Michigan Economic Growth Authority (MEGA) package that replaces several existing state incentives and makes Michigan a more competitive place to invest in new fuel-saving technologies and facilities. The Michigan Economic Development Council considers the package this week.

Once approved, Ford will allocate its $850 million investment across a variety of plants including Van Dyke Transmission, Sterling Axle, Livonia Transmission, and Dearborn Truck Plant. 

A significant portion of the company's additional investment will benefit engineering and production of Ford's new six-speed transmissions, which are planned for many future Ford vehicles and built at the Livonia Transmission Plant and Van Dyke Transmission Plant. By 2013, 100 percent of Ford vehicles will incorporate a six-speed transmission as part of the company's commitment to leadership in fuel economy performance in all vehicle segments.

This most recent investment commitment builds on the $950 million the company previously announced in Michigan to transform the Michigan Assembly Plant from a large SUV factory to a state-of-the-art car plant, which will build the new Focus arriving in showrooms early next year, as well as the company's battery-electric Focus and next generation hybrid and plug-in hybrid vehicles, all planned for production at the Wayne, Mich., facility by 2012.