The BBC reports that the state of Michigan has paid Ford $300 million to keep six factories in the state. Ford had threatened to move factories to other Midwest states like Minnesota and Indiana.
The move, which amounts to subsidies of about $23,000 per worker, could help safeguard 13,000 jobs in the state.
In return, Ford has vowed to invest $866m to upgrade the ancient equipment in the plants.
The firm had threatened to go to other neighbouring states, such as Minnesota and Indiana, which had also been prepared to offer subsidies.
Ford's investment will pay for the retooling of its Wayne assembly plant to produce the new 2008 Ford Focus small car and a $200m investment to produce Ford F150 trucks on the old River Rouge site.
An earlier article from Bloomberg about the same subject said Ford "applied in August for $151 million over 20 years in state incentives, estimating its plans would preserve 13,000 jobs." Ford and other US automakers have been struggling. Tens of thousands of auto job cuts were announced in early 2006.
