(The Center Square) – Ohio plans to give a 15-year tax credit to a company planning a new manufacturing facility to build parts for electric vehicles.
Schaeffler, owner of two plants in the state, plans a third in Dover that is expected to employ 650 people after a $230 million investment. The tax credits are tied to job creation.
The new jobs are expected to be split between the company’s plant in Wooster and the new Dover plant. The company employs more than 1,600 people.
“Ohio has always been home to the leading edge of automotive technology, and today’s announcement is further proof that Ohio will continue to dominate in this field,” Gov. Mike DeWine said. “Schaeffler is already established in Ohio, and we welcome their decision to expand here to support our growing and thriving electric vehicle ecosystem.”
Schaeffler makes components for engines and transmissions. The new plant is expected to produce electric beam axles and electric drivetrain systems for current customers Ford, General Motors and Stellantis.
The German-headquartered company expects to break ground in the middle of this year and open in the fall of 2025.
“This is an exciting milestone for Schaeffler, as we look forward to strengthening our presence in Ohio and preparing for the significant transformational growth ahead” said Marc McGrath, CEO of Schaeffler Americas. “Wooster, Ohio, serves as our largest location in the Americas region encompassing a vertically integrated manufacturing facility, training and product development centers.”
The move comes as EV issues continue to crop up around the country.
Earlier this week, a report said Chinese electric vehicle companies could “demolish” U.S. electric vehicle production.
An Alliance for American Manufacturing report says that without tariffs, Chinese competition will cause an “extinction-level event.”
At the same time, amid high-interest rates, many consumers either can’t or don’t want to buy EVs because of range anxiety, a sparse charging network and a higher upfront cost.
Unlike other states, Ohio has not established an electric vehicle goal within a certain timeframe. However, the state has begun establishing a charging network across the state.
Hybrid, plug-in hybrid and EV owners in Ohio pay a higher registration fee than traditional vehicles.
The federal government currently offers a $7,500 electric vehicle subsidy.
