Adding to an Associated Press report mentioned on just-auto on Thursday, the Detroit News, citing company sources, said on Friday that Ford is studying the possibility of building a new $US1 billion factory in Georgia to assemble its next-generation family of mid-size cars and replace the current Atlanta assembly plant, which produces the Taurus and Mercury Sable sedans.

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Ford spokeswoman Brenda Hines wouldn’t confirm or deny plans for a new plant to the Detroit News.

“We continually evaluate all of our options to make the best business decision,” she told the newspaper. “No decision has been made.”

The Detroit News said the project could hinge on the level of tax breaks Ford is able to negotiate with state and local officials in Georgia.

“It’s more of a possibility than it is not a possibility right now,” one Ford official told the paper. “But it’s still a long way from being a done deal.”

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Ford sources also told the paper that the Atlanta assembly plant — which was built in 1947 and employs 2,140 workers — is not the ideal site to build the new line of sedans because it’s somewhat outdated and there is scant room to expand.

The Detroit News said a new plant would give Ford a larger, more efficient and highly flexible facility but the initial investment would cost Ford hundreds of millions of dollars even with tax incentives so there is a good chance the company will opt instead to retool the current factory.

Georgia’s Senate has passed an amendment giving car makers huge tax breaks if they build new plants or expand existing ones, the Detroit News said.