ford Motor has paused work on a $3.5 billion battery plant in the US state of Michigan. The US car manufacturer said the reason was concerns about whether the plant could be operated competitively.
The announcement comes at a time when Ford is in negotiations with the auto workers union UAW and individual Ford plants as well as other US automakers strikes become. The automaker was forced to repeatedly increase its offer to the United Auto Workers union in ongoing collective bargaining.
A company spokesman denied any connection with the work stoppages. The union demands In addition to better wages, among other things, shorter weekly working hours and greater job security as automakers transition from combustion to electric vehicles.
Republicans in Congress are also reviewing Ford’s planned battery plant because it plans to use technology from Chinese battery giant CATL. Ford announced the construction of the battery factory in Marshall in February of this year. Production should start there in 2026 and 2,500 people should work there.
Ford in July forecast a full-year loss of $4.5 billion for its electric vehicle division. The car manufacturer also announced that it would ramp up production of electric vehicles more slowly.