If you buy your car, trucks or SUVs made in America, you may not have to worry about your next car having foreign parts anymore.
A new partnership between Michigan-based Ford Motor Company (NYSE:F) and a company called Yole Développement, located in France, will ensure that they can source all of their automotive parts from manufacturers in the U.S. instead of abroad.
“Ford has made an important commitment to the people of Michigan and has made significant strides in investing more than $13 billion into the U.S. over the past five years,” said Ford U.S. President Jim Farley in a statement. “While this commitment has boosted the economy in many communities, we all know the key to realizing the full economic benefits will be having companies like Ford in the marketplace. This partnership is an important step forward in our strategy to serve our customers and help create American jobs.”
Ford plans to invest $700 million in its Flat Rock Assembly Plant and employ 1,200 people as a result of the deal. It will hire 300 additional workers to work on supply chain projects that will reduce the need for other overseas manufacturers to meet North American demands. The partnership is expected to bring about $200 million to the local economy, supporting 120 additional jobs.
The partnership will also assist in tightening labor regulations at both companies’ plants. Ford says that the agreement will improve “workforce flexibility and openness.”
Ford and Yole Développement came to the agreement after three years of discussions. The exact process, terms and guidelines of the agreement are not currently public.