Just a few years ago, a Ford Motor Co. (NYSE: F) announcement that it would be creating jobs in Detroit would seem laughable. But now new jobs at Ford will become reality as Ford said it will create 170 new positions in the next two years at two of its plants near Detroit. The new jobs would come from two investments the Dearborn, Mich.-based company is making in merging fuel efficient auto technology, a mantra President Obama has advocated since he came into office in 2009.

Ford will invest $10 million to build battery packs in its Ypsilanti factory that will create 40 new jobs, according to the Associated Press. Meanwhile, another $125 million will be invested by Ford at its Sterling Height's factory where hybrid transmissions will be built. This investment will create 130 jobs. While the new jobs are a positive sign for Ford, the auto giant is still making layoffs in its other segments, such as a 900-employee downsizing at its Ford Mustang assembly line in Flat Rock, Mich., according to The Detroit News.

The race to create fuel efficient cars heated up last week when Toyota Motor Corp. (NYSE: TM) made a $50 million investment in electric car maker Tesla Motors Inc.

After coming close to bankruptcy because of its huge pension costs and lackluster inventory in the latter years of the decade, Ford has slowly been able to turn itself  around lately. The company posted a stronger-than-expected $2.1 billion quarterly profit in April--its fourth consecutive profitable quarter--and expects a bright future next year. "We expect to see continued improvement in 2011," Ford CEO Alan Mulally told shareholders yesterday at Ford's May annual meeting in Wilmington, Del. "We're clearly on a path now of profitable growth."