Ford Motor Co. will invest $1.4 billion to upgrade its Livonia, Mich., transmission plant in an effort to build 10-speed transmissions for its 2017 F-150 trucks.
The company plans to introduce the new transmissions in certain F-150 lines, including the F-150 Raptor among others, according to a news release Tuesday (April 26).
Ford expects the investment to retain or create 500 jobs.
Additionally, the company said it would spend $200 million to upgrade Ohio Assembly Plant. Both deals are part of the $9 billion commitment Ford made with the United Autoworkers in a collective bargaining agreement in 2015.
The 10-speed transmission was developed with General Motors and will begin production in June. Crain’s Detroit Business reported that the Michigan Economic Development Corp. approved tax incentives worth $23.7 million for the Livonia investment.
GM plans to add the transmission to eight models by 2018.
The two companies in hopes of improving performance and fuel economy developed the transmission. The transmission could allow for better towing capacity and fuel economy, assuming numerically lower gears (1-3) are geared for more aggressive acceleration and towing power, according to Ford Inside News.