Ford halts construction of Michigan battery plant for electric vehicles as strikes continue

stronghold He said On Monday it suspended building of a battery plant for electrical automobiles in Michigan. The automaker didn’t specify the precise causes for the shutdown as United Auto Staff (UAW) strikes proceed. Nevertheless, he talked about (via New York occasions) was to “briefly halt work and restrict building spending on the Marshall Mission till we’re assured we will function the plant competitively.”

The plant was arrange earlier this 12 months to supply battery know-how licensed from China’s Modern Amperex Know-how Co (CATL). It’s not but clear whether or not the suspension is momentary or everlasting.

This information got here forward of President Biden’s journey to Michigan on Tuesday He objects Subsequent to the protesting employees. Ford didn’t say whether or not its choice was associated to the strikes. UAW strikes towards the Huge Three automakers expanded to 38 areas in 20 states final week.

The $3.5 billion plant, which is scheduled to open in 2026, will produce lithium-iron-phosphate batteries for electrical automobiles – creating jobs for a minimum of 2,500 automotive employees and stimulating home electrical car battery manufacturing. Nevertheless, the venture is surrounded by uncertainty because the Biden administration considers rules that might forestall American firms from working with choose Chinese language firms.

The UAW beforehand gave Ford credit score for bringing extra concessions to the negotiating desk through the strike than GM or Stellantis, going as far as Spare Ford One of many latest strike expansions. The union is demanding increased wages, a shorter workweek, safety towards inflation and different employee advantages. In an interview this month, Ford CEO Jim Farley claimed that assembly the union’s calls for “will drive Ford to undo its investments in electrical automobiles.”

UAW President Sean Effective referred to as Ford’s closure “a shameful and blatant menace by Ford to chop jobs.” he to publish On X (previously Twitter) on Monday, “Closing 65 factories over the previous 20 years wasn’t sufficient for the Huge Three, and now they need to threaten us with closing factories that have not opened but. We’re merely demanding a simply transition to electrical automobiles, and as an alternative double down.” Ford is in a race to the underside.

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