Tuesday, December 5, 2023

Ford halts construction of battery plant

Ford has halted construction work on a $3.5 billion battery plant in Michigan, citing concerns about the plant’s ability to operate competitively.

The announcement comes as Ford has repeatedly increased its offer to the United Auto Workers (UAW) union in contract negotiations.

We are halting work and limiting construction spending on the Marshall project until we are confident in our ability to operate the plant.

He also noted that no final decision has been made on the planned investment there.

Meanwhile, US President Joe Biden plans to visit Michigan on Tuesday to meet with the UAW in support of striking workers at three Detroit automakers.

Republicans in Congress are investigating Ford’s battery plant in Marshall that uses technology from the Chinese company CATL, the world’s largest battery manufacturer.

You may be interested: UAW prepares more strikes at US automakers; in Canada the union negotiated with Ford

Ford predicts year-end losses

Ford in July forecast a full-year loss of $4.5 billion at its electric vehicle (EV) unit, up 50% from what it expected at the start of the year, and said it was slowing its pace of electric car production.

The automotive industry is waiting for the application of new rules on future tax breaks for electric cars to make investment decisions in the production of batteries for its transfer to this type of car.

In 2022, Congress passed the $430 billion Inflation Reduction Act (IRA), which prohibits a future $7,500 consumer tax deduction on EVs if any battery components are manufactured or assembled in “a suspected foreign entity.”

Ford is awaiting instructions to determine whether Marshall Silver batteries fail to meet requirements.

World Nation News Desk
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