Ford Motor Co said Monday it has suspended work on a $3.5 billion electric battery plant in Michigan, citing concerns about its ability to operate the plant competitively. The announcement comes at a time when Ford has repeatedly increased its offers to the United Auto Workers union in collective bargaining negotiations without yet reaching an agreement. US President Joe Biden is expected to visit Michigan this Tuesday and join a picket of union members in support of striking employees of the three automakers known as the Detroit Three: Ford, General Motors and Stellantis. Congressional Republicans are investigating Ford’s battery plant in Marshall, Michigan, using technology from CATL, the world’s largest manufacturer, over allegations it could facilitate the flow of U.S. tax incentives to China, leaving the automaker dependent from Chinese technology. “We are suspending work and limiting construction spending on the Marshall project until we are confident in our ability to operate the plant competitively,” Ford said Monday, declining to say what caused the decision. “We have not made any final decisions on the planned investment there.” In July, Ford forecast losses of $4.5 billion in its electric vehicle unit, 50% more than it had forecast at the start of the year. The company also said it is slowing the production of electric cars. The company said it plans to quadruple sales of hybrid models over the next five years. Some Michigan Republican lawmakers question $1.7 billion in tax breaks for the Marshall plant, where Ford plans to employ 2,500 workers.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
