Ford is expected to say it will invest in three MI manufacturing plants.
An engine plant in Romeo, Michigan, where 500 people work, is in line for a $150 million investment under the same deal.
Joe Hinrichs, the head of Ford's North and South America unit, told CNNMoney the company was confident in the additional investment, even though USA auto sales seem to be topping out.
President Donald Trump tweeted about the announcement Tuesday morning.
Ford will spend $150m on its Romeo plant to boost its ability to make vehicle parts, and $200m will be ploughed into a new data centre.
Ford is not alone in re-investing in the U.S.
An $850 million investment in the Michigan Assembly Plant supports the return of the Ford Ranger and the Bronco.
"So far we have announced more than United States dollars 4.7 billion of investment", she said, but the data center was not included in the contract as it does not included any new jobs.
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Ford announced in January it would invest $700 million at Flat Rock assembly and create 700 new jobs in MI.
- This report was updated at 10:32 a.m.
Ford's $1.2 billion investment has always been in the works, experts said. "We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come". In fact, the money was agreed to between Ford and the United Auto Workers union almost two years ago, said Michelle Krebs, an analyst for Autotrader.com.
The company also plans to create or retain 130 jobs and invest $150 million to expand capacity for engine components for several vehicles, including Ranger and Bronco, at Romeo Engine Plant in MI. "JOBS! JOBS!" Trump tweeted early Tuesday.
Unfortunately for the president and Conway, the administration can not take much credit for the new Ford deal.
Sometimes, however, Trump has promoted job announcements at the White House that had been previously planned or announced. Instead the Focus production will shift to an existing Mexico plant.
Krebs said planning for the Bronco dated back at least two to three years, and was discussed with the unions before they signed their agreement with Ford in November 2015.
"Both of those centers are part of our needs for the future and will help us handle our capacity to go from where we are going today to.developing and creating self-driving vehicles and the vehicles of the future, he said".