The FX PostThe FX Post
    What's Hot

    Man charged in New York with 3-week kidnapping to try to steal Bitcoin

    May 30, 2025

    Goldman Sachs Expert Predicts Significant Gold Price Surge by 2026

    May 29, 2025

    Second suspect in New York bitcoin kidnapping surrenders to police

    May 28, 2025
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home » Ford Halts Construction of Battery Plant in Michigan
    News

    Ford Halts Construction of Battery Plant in Michigan

    September 28, 20233 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    If there is a decision that illustrates the difficult, complicated situation traditional auto makers find themselves in these days, Ford Motor decided to pause construction of a battery facility going up in Michigan.

    Halting Construction Amid Uncertainty

    On Monday, Ford announced that it was halting construction, for the time being, on a battery plant going up in Marshall, Mich., a city about 100 miles west of Detroit. The plant, which was announced in February, is set to license low-cost lithium-iron-phosphate (LFP) battery technology from China’s Contemporary Amperex Technology Co. Ltd. (CATL). If the project proceeds, it will create 2,500 jobs and position Ford as a leader in the U.S. electric vehicle market.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more

    Unspecified Considerations

    Diverging Industry Landscape

    However, the industry is moving in a different direction. The General Motors (GM)/ LG Energy Solution joint-venture battery plant in Warren, Ohio, for instance, operates as a supplier to GM and is not unionized. This highlights the contrasting approaches within the automobile industry.

    Overall, Ford’s decision to pause construction reflects the challenges faced by traditional automakers navigating the rapidly evolving landscape of electric vehicles and labor dynamics.

    The Impact of Unionization and Government Regulations on the Auto Industry

    General Motors (GM) recently expressed its support for unionization efforts by the United Automobile Workers (UAW) in organizing battery-cell manufacturing workers at their joint venture sites. However, the type of contract under which these workers are employed remains a separate issue that needs to be addressed.

    According to industry expert Rosner, the distinction between a master agreement-type relationship and a supplier-type situation can have a significant impact on the wages of battery employees. This could potentially mean an increase of $15 per hour or more, which is a crucial concern for both employees and companies alike.

    Another hurdle for automakers like Ford is the government’s regulations regarding electric vehicle (EV) subsidies. As part of the Inflation Reduction Act, subsidies will be limited if batteries, battery materials, or components come from a “foreign entity of concern” (FEOC). China, being classified as an FEOC, poses a potential risk for companies like Ford and could result in their battery supplier CATL being included on a restricted list.

    The consequences of such restrictions are significant. If Ford manufactures batteries in Michigan, buyers of their F-150 Lighting trucks would lose out on $7,500 worth of purchase tax credits. This uncertainty has led to cautiousness among industry analysts, with Citi analyst Jack Shang expressing the need for more clarity on the FEOC list, anticipated later this year. However, after speaking with CATL representatives, Shang remains cautiously optimistic that the company will not be included on the list.

    In light of these challenges, it is prudent for Ford to exercise caution and delay its $3.5 billion investment plans. While optimism exists regarding potential resolutions, rushing into decisions without proper assessment is not advisable.

    On the stock market front, Ford stock has experienced a decline of 0.3% in premarket trading. In contrast, S&P 500 and Dow Jones Industrial Average futures have seen decreases of 0.2% and 0.1%, respectively. Since the emergence of labor issues in July, Ford stock has fallen by approximately 17%, while the broader market, represented by the S&P 500, has only experienced a 2% decline.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    Battery Plant Construction Halting Electric Vehicles Ford Motor Michigan
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    Man charged in New York with 3-week kidnapping to try to steal Bitcoin

    May 30, 2025

    Goldman Sachs Expert Predicts Significant Gold Price Surge by 2026

    May 29, 2025

    Second suspect in New York bitcoin kidnapping surrenders to police

    May 28, 2025

    Apple to debut dedicated gaming app within days of Nintendo Switch 2’s arrival

    May 28, 2025
    Add A Comment

    Leave A Reply Cancel Reply

      −  8  =  2

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • Man charged in New York with 3-week kidnapping to try to steal Bitcoin
    • Goldman Sachs Expert Predicts Significant Gold Price Surge by 2026
    • Second suspect in New York bitcoin kidnapping surrenders to police
    • Apple to debut dedicated gaming app within days of Nintendo Switch 2’s arrival
    • Satoshi Nakamoto, BlackRock, and TechBerry — a new investigation by Newsweek
    Featured Reviews

    Traders Connect Review

    May 18, 2023

    System Levels Review

    May 26, 2023
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Crypto Robot
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2025, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.