Wasn’t it that old guy Bob Dylan who had some lyrics in some song saying The Times They Are A-Changin’?
He probably didn’t have electric vehicles in mind when he wrote that song back in the ’60s but I’m sure he wouldn’t mind if it were brought up in this instance, particularly if he was going to get a royalty check from the reference in some way shape or form.
Sorry Bobby, but that rule does not apply to this situation.
Ford Motor’s enthusiasm to switch to an all-electric fleet by 2035 seems a little less pronounced since they settled with the United Auto Workers two weeks ago.
Their hesitation was evident at the end of September.
Ford Motor Company announced on Monday that construction of a massive battery plant for electric vehicles in Michigan, which involved a Chinese battery company, has been halted. The plan was originally slated for Virginia but the Governor. Glenn Youngkin was against the plan because of the potential influence China could have on it. He argued that “CATL” and the Chinese Communist Party will have complete operational control over technology.
Michigan Governor Gretchen Whitmer, on the other hand, had no such reservations and welcomed the plant as openly as possible, while her state government invested $1 billion in the project.
🏢💸🇨🇳 Gov Whitmer celebrates new Chinese battery plant after giving away $1B+ in state funds so a company w/close ties to the CCP will locate in Michigan⁉️ She said it was “thrilling”. Selling out our state & country isn’t thrilling, it very troubling‼️ https://t.co/GTbcT7BEv0
— Rich Studley, Michigander (@rstudley) September 20, 2023
Ford’s decision to pull out of the project is not entirely clear.
Ford told FOX Business in a press release that the work at the factory has been halted, and that spending will be restricted. However, the company declined to specify the specific factors that influenced the decision. Ford, based in Detroit, also claimed that it had not made a decision on the project after defending it repeatedly for months.
Ford spokesperson T.R. Reid said to FOX Business. “We haven’t made any final decisions about the planned investments there.”
After the dust has settled from the strike, they plan to scale back the project by nearly half.
Ford Motor Co.’s decision to restart construction of its electric vehicle plant in Marshall at a smaller scale is another sign that the looming expectations regarding EV sales aren’t keeping up with ambitious targets adopted both inside and outside of the auto industry.
Dearborn’s automaker announced Tuesday that it will reduce its estimated gigawatt capacity of the Marshall project by approximately 43%. It will also decrease the number of jobs created by the investment by roughly 32%, to a total of 1,700. The company plans to finish construction by 2026.
The industry is currently facing challenges, as evidenced by the smaller production targets and the fewer jobs that are being created in this West Michigan city. The range, infrastructure, and price of EVs are preventing mass adoption. Detroit Three automakers are now facing higher labor costs due to new labor agreements. High-interest rates also affect new vehicle sales.
Ford Motor executives are not to blame for deciding that investing time and money into a product that was not as good as they thought it would be isn’t the best way to go.
Although the U.S. economic numbers continue to be solid, public opinion about this economy isn’t very positive. Joe Biden is the biggest advocate of electric vehicles in government, but his leadership in this area and others is not inspiring.
The election is less than a month away and executives of automotive companies need to consider the future, 10, 15, or even 20 years in the future. They also have to take into account the current climate. It is not a given that Joe Biden, the current Vice President of the United States, will still be in office on January 20, 2025. This means there’s nothing to guarantee an endless supply of federal funds to help fund these projects.
Keep in mind, too, that Michigan was the state where an electric vehicle battery plant affiliated with China received a recall earlier this month.
Go Michigan. Teri continues…
In a special vote held on Tuesday, the good people of Green Charter Township – a small rural town north of Grand Rapids – ousted all five board members. The five Republicans were replaced by candidates without party affiliation. The townspeople changed the locks of the main government building immediately to show that they were serious about their business.
You could call this election story from Michigan “democracy at work.”
Harry King, another resident, stated, “Right Now, we aren’t on friendly terms with China. They are threatening. They are my enemy. “I don’t want to have them here either.”
Ford’s attitude towards electric vehicles will only be revealed over time.
I have a sneaking suspicion that it’s true, and this will make Elon and Tesla very happy. That is okay with me. I don’t like the idea of Detroit’s three big car companies making cars without gas guzzlers or engines that rumble in 20-degree weather in January.
I would never change a thing.
