Ford confirmed Nov. 21 it is cutting jobs and capacity at a major electric vehicle battery plant in Michigan amid billions of dollars of mounting losses in its electric vehicle unit.
"While we remain bullish on our long-term strategy for electric vehicles, we are re-timing and resizing some investments," Ford said in a Nov. 21 statement. "As stated previously, we have been evaluating BlueOval Battery Park Michigan in Marshall."
The BlueOval Battery Park Michigan will now create 800 fewer jobs and cut capacity by 40% as it shrinks overall investment by $1 billion, according to a report on Bridge Michigan. It is expected to be the first of Ford’s EV battery plants of this kind when it begins producing LFP battery cells starting in 2026.
"We are pleased to confirm we are moving ahead with the Marshall project, consistent with the Ford+ plan for growth and value creation," according to the Ford statement. "However, we are right sizing as we balance investment, growth, and profitability. The facility will now create more than 1,700 good-paying American jobs to produce a planned capacity of about 20 GWh."
In its Q3 earnings report issued Oct. 26, Ford indicated its EV segment recorded an EBIT loss of $1.3 billion, which it attributed to "challenging market dynamics" and continued investment in next-generation electric vehicles. That is more than double its loss in Q3 2022.
Many North America customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles, sharply compressing EV prices and profitability, Ford said in its earnings report. Tesla also cut prices on its EV models by 20% in late 2022, squeezing competitors into similar price cuts.
Ford lost $36,000 on every electric vehicle sold in the third quarter despite a 44% increase in deliveries and 26% growth in year-over-year EV unit revenue, according to a report in InsideEVs.
Originally posted on Charged Fleet