Automaker Ford is facing delays and financial losses in its EV manufacturing efforts due to the ongoing United Auto Workers strike and a slowing EV market. The strike has caused a loss of $100 million in earnings before interest and taxes and trimmed production by 80,000 units. Ford is now seeking to negotiate supplier contracts and streamline its supply chain to cut costs. The company is also reducing parts complexity in its models and focusing on scaling, vertical integration, and batteries to reduce the cost of EVs.
Frequently Asked Questions
1. Why is Ford delaying construction on its second Kentucky battery plant?
Ford is delaying construction on its second Kentucky battery plant as part of cost-cutting measures and to better negotiate supplier contracts.
Source: Supply Chain Dive
2. Is the delay in construction due to a UAW strike?
No, the delay in construction is not due to a UAW strike. It is primarily a result of cost-cutting measures and negotiations with suppliers.
Source: Manufacturing Dive
3. How much is Ford delaying in planned EV investments?
Ford is delaying about $12 billion in planned investments on EVs, including the construction of a second battery plant.
4. Will the Ford electric battery project still happen?
Yes, Governor Andy Beshear confirmed that the Ford electric battery project is still happening. However, there will be a delay in the timeline of its operation.
5. Where is the second Ford battery plant located in Kentucky?
The second Ford battery plant is located in Glendale, Kentucky, in Hardin County.