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Ford's new EV development center is in Long Beach, California. Here's why

Breana Noble, The Detroit News on

Published in Business News

These kind of projects are good, but if Detroit still isn't a talent magnet city with vibrant, walkable neighborhoods and accessible transit and the state isn't producing the kind of individuals with the skills its heritage industry needs, the impact of these major investments will be limited, said Lou Glazer, president of Michigan Future Inc., a nonpartisan think tank focused on the economic well-being of Michigan.

"The state's predominant vision still is focused on attracting manufacturing, particularly at automotive plants," he said. "You don't need college degrees for that. We are not making a priority out of four-year degrees and creating particularly vibrant central cities that are essential to retaining and attracting recent college graduates. It has not been a priority."

Michigan remains a leader in automotive engineering, design, testing and manufacturing, attracting research-and-development centers from EV startups Lucid Group Inc. and Volkswagen AG-backed Scout Motors Inc. But it's critical it grows that ecosystem to continue to compete for industry investments, said Glenn Stevens, executive director of the Detroit Regional Chamber's MichAuto mobility arm, which has several long-term projects focused on attracting tech talent.

"California normally ranks as No. 1, 2 or 3 for software jobs and pay; Michigan is well down the pack, usually in the mid-20s," he said. "It's such a global competitive space and a huge juggernaut that did not exist that long ago. They have to deploy their resources for product development and vehicle development wherever the talent is in the world."

Richardson, the Long Beach mayor, emphasized an intentional approach in the kind of businesses in which the city is investing.

"We don't have to chase every job and compete with Texas for every $15-an-hour job," he said during the presentation. "Let's take our time, be thoughtful. Let's bring in the jobs that are advanced manufacturing, engineering, even welding from Long Beach City College starts at 45 bucks an hour. These are jobs that don't even require a degree, but if you build the right mix of advanced manufacturing, of electric vehicle development, you can create a really special cluster ...

 

"We don't have to compete with every city. ... We're going after these clusters: the Denvers, the Phoenix. We don't have to have this competition with Texas. We have something very special, and people want to be here because of the balance of both talent and quality of place here in Long Beach."

Disruptive without disruption

Work to put together Ford's skunkworks team began two years ago, according to executives, when they realized the sweet spot in the EV market should be a low-cost offering. The name is borrowed from defense contractor Lockheed Martin Corp.'s Advanced Development Programs that seek to define the next-generation of technology in its industry and create "disruptive solutions," according to its website.

Ford declined a request from The Detroit News for an interview with Clarke or another member of the skunkworks team for this story, but executives have routinely shared how key initiative is to Ford's electrification journey and strategy for competing with potentially low-cost EVs from China.

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