Ford Motor, currently engaged in intense contract negotiations with striking United Automobile Workers (U.A.W.), announced on Monday that it will temporarily halt construction of a battery factory in Michigan due to concerns about the plant’s ability to produce cost-competitive products.
The reasons behind this decision are unclear. However, it is worth noting that Ford has faced criticism from Republican lawmakers for its plan to manufacture batteries at the Marshall plant in Michigan using technology licensed from CATL, a Chinese company recognized as the world’s largest producer of batteries for electric cars.
Ford’s chief executive, Jim Farley, expressed concerns that the U.A.W.’s demands for increased pay and benefits would hinder the company’s efforts to expand electric vehicle production. Farley warned that meeting all of the union’s demands would force Ford to cancel its investments in electric vehicle manufacturing.
T.R. Reid, a spokesperson for Ford, stated on Monday that the company has decided to pause construction and limit spending on the Marshall project until they can ensure competitive operation of the plant.
Further details regarding the specific reasons for this decision were not provided. The announcement was made just a day before President Biden’s visit to Michigan to show solidarity with the U.A.W. on the picket lines.
Responding to Ford’s decision, U.A.W. President Shawn Fain criticized it as “a shameful, thinly veiled threat to cut jobs.” Fain added that the union is merely advocating for a fair transition to electric vehicles, while Ford appears to be prioritizing cost-cutting measures.
It is important to note that workers at a Ford plant in Wayne, Michigan have been on strike for over a week. However, the U.A.W. has acknowledged that Ford has made more effort to meet their demands compared to General Motors or Stellantis, the maker of Jeep and Ram vehicles. These demands include a 40 percent increase in pay, a shorter workweek, protection against inflation, and additional benefits.
While the plan for the Marshall factory involves producing lithium-iron-phosphate batteries as an alternative to batteries made with lithium, nickel, and cobalt, which have raised concerns regarding environmental and human rights issues, Ford has argued that producing these batteries in the United States using Chinese technology is a better option than importing them.
Lithium-iron-phosphate batteries are not currently mass-produced in the United States, with automakers such as Tesla importing them from China. Ford’s decision to halt work on the Michigan plant may also reflect uncertainty about potential regulations that could limit collaborations between U.S. companies and certain Chinese firms. It is worth noting that Ford had previously announced plans to invest $3.5 billion in the factory and employ 2,500 people once production begins in 2026.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
