Ford is taking advantage of legislation that was signed into law late last year by Governor Quinn. Under the change in the legislation, The Economic Development for a Growing Economy allows for automakers to more easily receive tax credits.

The timing of the news is significant in Illinois, as the state exceeds an 11% unemployment rate. In Chicago, the most recent numbers rate unemployment at 10.7%. The expansion of Chicago-based Ford operation should provide a significant boost to the South Suburban region.

The two Ford plants are located within the districts Majority Appropriations Chair Donne Trotter (D-Chicago) and State Senator Toi Hutchinson (D-Olympia Fields).

"This legislation gives Illinois a competitive advantage as every state in the union struggles through the tough economic climate," said Senator Toi Hutchinson, whose district is home to the Ford stamping plant. "This is a great example of the General Assembly working together to find innovative ways to grow our economy. These 1,200 jobs are a step in the right direction towards the economic recovery in our region."

The Torrence Avenue Assembly plant is located in Senator Donne Trotter’s district.

"Today's announcement is a strong indication of our state's progress toward economic recovery," Senator Trotter said. "During these difficult times, we must work with good corporate citizens, like Ford, to create jobs in Illinois and promote job development."

Ford Motor Co. will invest over $400 million into the project, $180 million of that going towards a manufacturing investment at the site and the remaining $220 million will be used for launch and engineering costs.

Ford plans to produce their new Ford Explorer SUV in the Chicago based plants. This new model is designed to be a down-sized version that is more fuel efficient and would be released before the end of the quarter. Experts say that the next generation Explorer will get 20% to 25% better gas mileage than the truck model it will be replacing.