Ford's new investments will be made in three Michigan locations, with United States dollars 850 billion going to its Michigan Assembly Plant to retool it for making new Ranger pickup trucks starting late next year, and Bronco sport utility vehicles in 2020.
Ford has said it will spend $1.2bn (£1bn) as part of a planned upgrade of three MI plants.
Joe Hinrichs, the head of Ford's North and South America unit, told CNNMoney the company was confident in the additional investment, even though US auto sales seem to be topping out.
President Donald Trump cheered the move in an early morning tweet.
That agreement had about $1.2 billion earmarked for the same three MI facilities, according to the Detroit News, but the distribution of the money was slightly different. Auto companies coming back to US. Of that, $850 million is earmarked for its Michigan Assembly plant in the Detroit-area city of Wayne, where the new Ford Ranger and Ford Bronco will be made.
Ford also recently announced plans to invest $700 million and convert 700 temporary jobs into permanent positions at its Flat Rock, Mich., factory.
- This report was updated at 10:32 a.m.
Ford says it expects its data usage to increase 1,000% as an increasing percentage of vehicles are equipped with wireless Internet that can deliver more services to drivers and passengers. "We're proud of fact that we make more vehicles in USA than anyone else".
Both projects were part of 2015 negotiations with the UAW, when Ford said it would invest $9 billion in USA plants over four years.
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The automaker plans to invest $9 billion in US facilities through 2019, resulting in 8,500 new or retained jobs.
The board of the Michigan Strategic Fund, which makes decisions about tax incentives for economic development projects, on Tuesday approved an economic development incentive package of just over $20 million over 15 years.
The factory had been producing a mix of small cars, including the Ford Focus, which will now be moved to a plant in Mexico.
But in jointly announcing the new investment, Ford and UAW clearly credited their 2015 labor agreement.
"I think the auto companies are being savvy in the way they publicize them (the investments) to appease the President", Krebs said.
The announcement by Ford comes less than two weeks after Trump visited Detroit to promise more auto jobs for MI and other Midwestern U.S. states.
In addition, Ford has also designated $200 million for an advanced data center, the release noted.
Trump has previously touted job announcements that were already in the works before he was sworn in as president.
Trump told a roundtable of automotive chief executives that he would help them if the relationship ran both ways.