Local political wrangles, and possibly fallout from the current UAW strike, have prompted GM cross-town competitor Ford to halt construction of its $3.5 billion EV battery facility in Marshall, Michigan, at least for the time being.
Ford hit the pause button on Monday of this week, The Detroit News reports, stopping progress on construction of the Blue Oval Battery Park Michigan, which was to employ roughly 2,500 workers when complete.
Bill Ford announcing the Marshall battery park
Ford states the halt is because of a “number” of factors, while its representatives refuse to be drawn out about whether the current labor difficulties with the UAW have any bearing on the decision. T.R. Reid, a Blue Oval spokesman, remarked that “we’re going to limit spending on construction at Marshall until we’re confident about our ability to competitively run the plant.”
At least some residents of Marshall, Michigan have been less than delighted over the Ford battery plant plans, attempting to halt the construction in court. Among their objections are the use of farmland for the 2.5-million square-foot industrial park, secretive negotiations, and the involvement of Chinese LFP battery developer Contemporary Amperex Technology Co. Ltd. or CATL in the project. The courts have declined to stop the plant, however.
While Ford is reticent about its exact motivation in halting construction, other interested parties have no hesitation in blaming the move on the automaker’s wrangle with the union.
Shawn Fain during the strike
United Auto Workers president Shawn Fain blasted the construction pause as a strongarm negotiation tactic in the contentious contract negotiations between the Big Three carmakers – GM, Ford, and Stellantis – and the UAW. He claimed that union members are “simply asking for a just transition to electric vehicles, and Ford is instead doubling down on their race to the bottom,” describing the construction stoppage as “a shameful, barely veiled threat.”
State Governor Gretchen Whitmer, who negotiated the location of Blue Oval Battery Park Michigan in the region, appeared to largely agree with Fain’s assessment. Her office struck a more upbeat note, however, pointing out “Ford has been clear that this is a pause” and expressing hope the UAW negotiations will wrap up successfully soon “so that Michiganders can get back to work.”
Both U.S. presidential contenders are also getting involved in the labor dispute, with President Joe Biden joining UAW picket lines in Michigan and challenger Donald Trump planning a Macomb County town hall.
Ultium Cells Ohio
Meanwhile, GM is moving ahead strongly with expansion of its Ultium Cells battery plants. Ultium Cells Warren in Warren, Ohio is currently operational and producing Ultium battery cells for The General’s growing EV lineup, while Ultium Cells Spring Hill will come online before the end of 2023. Ultium Cells Lansing is still on track to begin production sometime prior to the end of 2024.
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Comments
1. Make deal with union.
2. Temporarily shut down EV plants.
3. Tell government it’s because of union deal.
4. Get new EV funding.
5. Profit.
It might work.
Maybe they are seeing the light that the Chinese are going to flood the market with cheaper batteries. How many solar panels are made in the USA.,
Ford is likely slowing their EV push due to poor uptake by consumers, which is making this period of unprofitability on EVs last a lot longer than they expected. GM would be wise to do the same rather than diving headlong into a pool of unknown depth.
GM will be in a dire financial situation in 2-3 years because of their focus on total electric vehicles. Toyota has the right idea with more Hybrids and Ford to some extent as well.
They just invested billions in a new engine plant. You’re out the lunch or is just trolling.
More models of electric vehicles are coming out and the consumer is liking a $ 7500 (new EV) rebate or $4000 rebate for used EV. Us folks in the middle class like a tax cut… it’s not just for the country club a elite.
There is no EV education out there being done by dealerships, or to some extent the auto makers. They’re hiding the EVs because once you get into an EV and understand the superior drive, technology, performance, then you don’t go back. Plus, were using domestic energy, not the Saudis and the Ruskies oil that’s drive in a hole in our atmosphere..
We are not using domestic energy when one of the companies involved in this battery plant is “Chinese LFP battery developer Contemporary Amperex Technology Co. Ltd. or CATL in the project.” It is right in the story. You would rather give money to China for battery technology and raw battery materials because the the US government gives you a tax credit? As a Michigander, this battery plant is a slap in the face because our tax dollars are going straight overseas to Xi.
GGH, Exactly what domestic energy would that be that your so called “superior” EV is using? The vast majority of US electricity is produced by fossil fuels, and since your hero came into office and shut down the pipe line and US oil and gas exploration, the energy to charge your EV is almost all coming from the Saudis and Russians.
Additionally, if EV’s are so wonderful, then why does the Fed still need to bribe people to buy them with tax credits and rebates? Could it be that people with common sense realize they’re not practical, but instead are still nothing more then overpriced toys for fanboys?
Oh now were not energy independent with Saudi and Russian oil? Hmmm. Oh were we ever energy independent? No 20m-13m is a 7mil deficit but some can’t do math. Keep believing. For those willing to go the EV route fine. For those not will eventually have to come. For those wanting to have all American whose days are gone simply because the newest of generations want the cheapest of products regardless to where made. These are the real problems that the elders dont want to recognize. In the end the world WILL move on with or without us. Im amused.
You don’t get a rebate unless you pay that much in taxes. As a retired baby boomer I don’t have a mortgage or pay enough taxes to get anything but a standard deduction thus I wouldn’t qualify. Sure their performance is great as I have driven a Tesla with the ludicrous package, but my Vette does the same thing just not a quietly.
If you make over 300,000 grand as a household, correct. It’s for the lower class, and lower and middle class, not upper.
The credit is outside the standard or long form deductions. All ya have to do is cash out more 401k and put it in your savings until needed.
Whatever path leads to the end of the UAW so both the workers and manufacturers can be profitable with the UAW pounding sand, is the one I want.
UAW is prohibiting growth, profits and competitiveness. Ford can’t just decide to underpay workers, they’ll leave. We have learned this over and over.
I agree…I think that the OEM’s should lock the UAW out and force them to support their newly laid-off employees with their shrinking strike fund.
Hybrids are the environmental and consumer winner until we have reliable solid state batteries and means to charge them in 15 minutes – like 1MW ultra chargers.
To me, solid state batteries are big oil propaganda and the automakers that aren’t changing.
And too long to wait for. Some of us now owning even a gulp…plug in HYBRID….can they say VOLT….have spent nearly NOTHING on gas. So I for one look forward to a full EV any day now when they make in volumes which LIKE everything else should reduce the price as has been done with LED/QLED/OLED TVs, Cameras, Cell Phones, and and and if the autos are not that greedy! Time will tell.
Read up on Toyota’s coming EV line up- sorry they may kill Tesla.
Does Ford know something Mary doesn’t? Is the EV mandate scam crumbling? Everyone knows that when the GOP takes over in 24 the EV mandates will likely disappear and the car companies will be on their own without government protection.
The pubs and big oil will wish this. But with all the investments this time around World Wide it is not going away for good IF that happens. Time will tell. And if it comes to pass it only shows one side only being interested in themselves and NOT for the long term good for the country. I dont believe in target dates and full transition either by those dates but over time it should be encouraged. And that is the problem. The politicians would rather have us fight about it to stay on their side.
The EV market is not going to grow fast enough to ensure that all or any of the manufacturers can be profitable. To keep up production, a price war is going to develop and the manufacturers who produce a quality low cost EV in each price class will prevail. Detroit is not positioned to be even close to a low cost producer. Among manufacturers there will be bankruptcies.
Detroit and the UAW are in the cross hairs of a major financial disaster.
Some of the UAW demands are ludicrous. A 43% pay raise, a 4 day work week and paid for 5. A factory runs most efficiently on 24/7 schedule and it takes a 5 day minimum to build the volume the market requires.