As the United Auto Workers Strike continues to impact the automotive industry, President Joe Biden's push for electric vehicles has suffered a major setback. This comes as U.S. automaker Ford Motor Company announced on Monday that it would be pausing the construction of a billion-dollar plant in Michigan due to uncertainties surrounding its ability to operate competitively.
The plant, which is set to be located in Marshall, Michigan, was initially announced earlier this year with great fanfare. At the ceremony, Ford revealed plans to invest $3.5 billion in the plant and partner with Chinese battery company Contemporary Amperex Technology (CATL) for the production of battery cells.
However, just months after the initial announcement, Ford stated that it would be putting the project on hold. "We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant," said Ford spokesperson T.R. Reid. "We haven’t made any final decision about the planned investment there."
I know the "upper chamber" is busy with wardrobe policy at the moment but stop the lies.
Biden told automakers by 2030 they should have 50% of sales be EVs. That hamstrings the auto industry, which jeopardizes autoworkers livelihood.
"Union Joe" is responsible for this mess. https://t.co/s4ySY2HSFc
— Representative Lisa McClain (@RepLisaMcClain) September 20, 2023
The decision to halt construction of the plant raises questions about the future of electric vehicle production in the United States. With billions of dollars in losses projected for this year alone, Ford is feeling the financial strain of Biden's push for electric vehicles. In fact, Ford recently reported that it will lose $4.5 billion on electric vehicle production this year, an increase from the previously projected $3 billion loss.
This news comes at a crucial time as President Biden plans to visit the UAW picket line in Wayne, Michigan on Tuesday. The ongoing strike has already caused disruption in the automotive industry, and the pause in construction of the Ford plant adds to the uncertainty surrounding the future of the industry.
Despite the financial struggles and delays of the electric vehicle push, President Biden continues to argue for further subsidies and incentives to incentivize private companies to increase their production of electric vehicles. This may prove to be a tough sell, especially with Ford's reported loss of $60,000 per electric car produced.
The Biden administration's ambitious climate agenda has been met with mixed reactions from the public and private companies alike. While the push for electric vehicles is seen as a necessary step towards reducing carbon emissions, the financial burden it places on companies and the potential impact on the American workforce cannot be ignored.
As the UAW strike continues and the future of the automotive industry remains uncertain, it is clear that President Biden will face many challenges in his goal to transition to electric vehicles. The pause in construction at the Ford plant serves as a warning sign for the potential drawbacks of these mandates and the need for careful consideration and planning in such a significant industry shift.
US President Joe Biden said he supports the United Auto Workers union as the strike against the Detroit Three automakers entered its tenth day. Biden will travel to Michigan to show support for workers and visit a UAW picket line https://t.co/wfrK06swTX pic.twitter.com/yVQtOdWmIk
— Reuters (@Reuters) September 26, 2023