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News Briefs

Date Posted: January 19 2007

Health care costs moderate
A study released this month, considered the most comprehensive look at the nation's health care spending, found that per-person health care spending rose by 6.9 percent in 2005. That's down from 7.2 percent in 2004 and is the lowest increase since 1999.
Published in the journal Health Affairs, the study said 2005 is the most recent information available. The report said it isn't clear whether the trend toward lower costs is temporary or long-term.

"Health care costs continued to grow faster than the underlying rate of inflation, faster t
han the rest of the economy and faster than the growth in average wages, said Jack Ebeler, a health care consultant, to the Wall Street Journal.

The study found that prescription drug costs rose 5.8 percent in 2005, compared to 8.2 percent in 2004 and a peak of 18.2 percent in 1999.

Ford to unleash $866 B in spending
Elsewhere in this paper, a forecast for the 2007 construction industry in Southeast Michigan mentioned 17 projects approaching $3 billion.

On Jan. 9, the Ford Motor Co. showed its value to Michigan Hardhats by announcing investments totaling $866 million in six Southeastern Michigan plants. With its announcement, the financially ailing automaker underscored its commitment to Michigan - which hopefully won't be lost on the state's vehicle buyers.

Ford said the investments in flexible manufacturing and advanced powertrain production will help the company grow its small-car lineup, produce more fuel-efficient transmissions, and fortify its worldwide truck leadership position.

"Our turnaround in North America and our return to profitability is based on strategic investment, not just cost cutting," said Mark Fields, president, The Americas, Ford Motor Company. "With this investment, we're expanding our commitment to small cars, producing fuel-efficient powertrains and fortifying our truck leadership."

These investments, which represent the first part of a $1 billion commitment from Ford, are supported by a Michigan Economic Development Corporation incentive package of $151 million. In addition, the state and local communities are considering additional property tax abatements.

"The state is pleased to partner with one of our major auto manufacturers to provide the leadership and creativity that will retain jobs in Michigan," Governor Jennifer M. Granholm said. "Ford's commitment to flexible manufacturing, designing and producing the vehicles that people want and solidifying their market leadership in truck manufacturing bodes well for Michigan's economy in the immediate future."

The investments are as follows:

  • Wayne Stamping and Assembly Plant received $130 million for tooling and equipment to build the all-new 2008 Ford Focus, which has been redesigned inside and out.
  • Van Dyke Transmission Plant received $320 million to install a flexible machining line to assemble a fuel-efficient, high performance 6-speed, front-wheel drive transmission for the next generation Ford Escape.
  • Livonia Transmission Plant received $88 million to install flexible tooling to increase its production of a fuel-efficient, high performance 6-speed, rear-wheel drive transmission for the 2009 Ford F-150.
  • Woodhaven Stamping Plant received $89 million for new dies and subassembly equipment to stamp parts for the 2009 Ford F-150.
  • Dearborn Stamping Plant received $31 million for new dies and subassembly equipment to stamp doors and hoods for the 2009 Ford F-150.
  • Dearborn Truck Plant received $208 million to install additional tooling and equipment to build the 2009 Ford F-150. Additionally, the investment will be used to convert Ford's historic Glass Plant on the Rouge site into a training center for the launch of the all-new pickup.

"With these investments and a focused and committed workforce, we stand ready to deliver the cars and trucks that people want," said Joseph Hinrichs, vice president, North America Manufacturing. "We're solidifying our manufacturing base and positioning ourselves for future growth."

Ford employs nearly 325,000 and has 110 plants worldwide.