Ford Motor said on Monday it has paused work on a $3.5 billion electric vehicle battery plant in Michigan, citing concerns about its ability to competitively operate the plant at a time when it remains locked in broader contract negotiations.
United Auto Workers (UAW) President Shawn Fain blasted Ford, saying the announcement was "a shameful, barely-veiled threat by Ford to cut jobs.... We are simply asking for a just transition to electric vehicles and Ford is instead doubling down on their race to the bottom."
Ford has repeatedly raised its offer to the union in contract talks without securing a deal, while the fate of battery plant workers has remained a key issue in negotiations with the Detroit Three.
"We are pausing work and limiting spending on construction on the Marshall project until we're confident about our ability to competitively operate the plant," Ford said on Monday, declining to say what specific reason triggered the decision but adding there were a number of considerations. "We haven't made any final decision about the planned investment there."
Ford in February announced plans to build the plant in Michigan, betting that making the batteries in the United States would help it and Chinese partner CATL (300750.SZ) attract U.S. customers to embrace a lower-cost technology pioneered in China.
Michigan Governor Gretchen Whitmer said: "Ford has been clear that this is a pause, and we will continue to push for successful negotiations between the Big 3 and UAW so that Michiganders can get back to work doing what they do best."