Biden, Economy & Business, Government, Politics

Biden’s Electric Vehicle Dream Crushed by Ford’s Bold Move

As the United Auto Workers Strike persists, President Joe Biden’s push for electric vehicles faces a significant setback. Ford Motor Company, a U.S. automaker, announced a halt to the construction of a billion-dollar plant in Michigan involving a Chinese electric vehicle battery company.

The decision was explained by Ford spokesperson T.R. Reid, who stated, “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. We haven’t made any final decision about the planned investment there.”

Ford had previously announced a $3.5 billion investment to construct the plant in Marshall, Michigan, with plans to collaborate with Contemporary Amperex Technology (CATL), a Chinese battery company based in Ningde. The intention was to manufacture battery cells at the plant using CATL’s services.

However, Ford recently reported significant financial losses in its electric vehicle division, projecting a loss of $4.5 billion for this year alone. It’s noteworthy that the company is losing approximately $60,000 per electric vehicle produced.

Despite these financial challenges, the Biden administration continues to advocate for taxpayer subsidies to support these substantial losses as part of the administration’s climate agenda. President Biden remains committed to electric vehicle mandates for private companies.

This development underscores the challenges and complexities involved in transitioning to electric vehicles, with financial concerns and competitive viability playing a central role in the decision-making process for both automakers and government policy.

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