9/26/2023 - Ford hits pause on EV $3.5B project

Ford pauses work on $3.5 billion battery plant in Michigan

(Reuters) -Ford Motor said on Monday it has paused work on a $3.5 billion electric vehicle battery plant in Michigan, citing concerns about its ability to competitively operate the plant at a time when it remains locked in broader contract negotiations. United Auto Workers (UAW) President Shawn...

finance.yahoo.com

 

[TesLEEZ]

UAW says this is a veiled threat to them, used as an intimidation tactic for better negotiating power at the table. But I think this is legit and they're considering building the plant in Mexico instead to compete with Tesla.

 

[ChooseFreedom]

UAW says this is a veiled threat to them, used as an intimidation tactic for better negotiating power at the table. But I think this is legit and they're considering building the plant in Mexico instead to compete with Tesla.

Could be both.
Ford started planning when they had certain payroll expectations, and before Tesla unveiled it's newer M3 and plant plans.

Now with the inevitability of higher payroll, and the ever increasing pressure to keep up with Tesla, I have no doubt there are too many variables for them to confidently continue with that project.
They will certainly use this in their UAW negotiations, but it could also be legitimate and not just a tactic.

 

[BBTX]

IMHO, if UAW substantially "wins" their negotiations, it will basically doom all their jobs in the long run. The game is on, and right now it's a global competition between the likes of Tesla and BYD, and legacy automakers around the world are basically in a fight to stay alive at all in the coming years. Job-protectionist stuff in domestic politics like the UAW debacle will only hurt in the long run. So will protectionist trade tarriffs.

But back on the topic: it's refreshing to see a big company like Ford take a rational approach to something like this, and consider canceling something big they're already a bit vested in because the math isn't working out. It's certainly better than the usual thing that happens in these situations, which is do it anyways and let the shareholders take the loss over the next decade or two.

 

[voldar]

It's certainly better than the usual thing that happens in these situations, which is do it anyways and let the shareholders take the loss over the next decade or two.

Who and why would someone care about shareholders over workers ?

 

[rzn89]

Who and why would someone care about shareholders over workers ?

You can’t be serious?

 

[voldar]

You can’t be serious?

Looking at the middle class four decades ago and now... the shareholders would have nothing if the workers would stop working. Covid was a good test for our society as it was. And beware, the new generation doesn't take the corporation bullshit anymore as the one of my time (gen X). There will be a shift in the next 15-25 years that no one expected and better be prepared.

 

[hey kupo]

Ford's only hope is to pony up and fast track that plant. Already not competitive.

 

[ItsNotAboutTheMoney]

They have other battery factories coming. They can build another one somewhere else.

 

[ChooseFreedom]

Looking at the middle class four decades ago and now... the shareholders would have nothing if the workers would stop working. Covid was a good test for our society as it was. And beware, the new generation doesn't take the corporation bullshit anymore as the one of my time (gen X). There will be a shift in the next 15-25 years that no one expected and better be prepared.

You think shareholders care about 20 yrs from now? Most of them will be dead.
Progress happens one funeral at a time.

Yes, the middle class is becoming non-existent in this failing fiat time. And it will only continue to get worse.
So yeah, the working class has to continue to push back against the counterfeit class just to break even, and they're still losing.
These charts show how bad it's gotten:

These trends are not slowing down.

Ford's shareholders want short-term gains now. They don't care about the long-term because they know the house of cards is closer than ever to collapsing. So they want to cash in as soon as possible.

It's true across the financial board. Anyone who's studied the history of money will tell you that every fiat that has ever existed has failed. They all inevitably go to zero. The Fed's money printer cannot fix this everything bubble. And all the global corporations should be bracing for it.
This step by Ford is simply showing the fact that their execs see at least some of what's coming.

 

[Kandiru]

UAW says this is a veiled threat to them, used as an intimidation tactic for better negotiating power at the table. But I think this is legit and they're considering building the plant in Mexico instead to compete with Tesla.

Because over there they will only need to pay for cartel protection and exploit the workforce better, instead of contributing to the greedy union bosses and their mega DC bribing machinery, passed onto customers by higher unit costs.

 

[voldar]

Because over there they will only need to pay for cartel protection and exploit the workforce better, instead of contributing to the greedy union bosses and their mega DC bribing machinery, passed onto customers by higher unit costs.

I think you got it wrong. The true answer is the following :

Because over there they will only need to pay a third of what they would have payed in US and the rest of the money will go in the pockets of the CEOs and their shareholders. They will continue to pass onto customers the higher unit costs because their mega DC bribing machine is a well oiled one and needs a constant money influx.