Featured Ford hits the brakes on $12 billion in EV spending because EVs are too expensive

New chemistries can allow physically smaller batteries, but the capacity won't change much from the large battery. In the context of @hill's statement, they are the same size.

 

Bob Wilson

 

Ford will postpone about $12 billion in EV investment

Never trust the verge for financial news. I believe ford is postponing not canceling $12B out the the $50B investment. This coincides with a much bigger contract with UAW, and the UAW doesn't want ford to move as fast in electric vehicles because they fear fewer jobs per car.

The loss on the e-unit according to CNBC is about what analysts were predicting this year. The big selling the f150 lightning needs to finish its improvements. Its hard to push and compete directly with tesla.

 

Looks like Chrysler Dodge Fiat Stelantis is going to be entering the fray real soon - both an ev version AND this - a plug-in that runs electric like the i3. (i see 2 fuel doors)



https://ramrev.com/

14,000 Lb towing

seems we DO love the pickups
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These already heavy vehicles - pickups and midsize and up SUVs can benefit the most from electrification. They typically have powerful engines that can be downsized and made more efficient in a phev, or replaced in a bev. The transition will take time and with the new contract the foreign owned automakers and tesla have the advantage of non union plants. Ford's cost of labor just went up versus tesla which makes competing harder. There is enough experience in the pick up truck markets and profitability that stalantis, ford, and gm can win with phevs and bevs there.

 

Meanwhile, CT will eat up market share, and when legacy makers finally start producing, Wall Street will claim Tesla is in trouble

 

Given those UAW contracts and the tight labor market, how long can Tesla continue its current pay scale?

 

Given those UAW contracts and the tight labor market, how long can Tesla continue its current pay scale?

 

to be sure ... if ANY manufacturers pay scale doesn't cut the mustard people move over to the better paying company. It's a principle as old as time. At that junction the lower paying company has to jack up their wages - or - offer other better incentives such as supplemental retirement medical, higher percentage 401K contributions Etc.
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Shouldn’t be a problem, they’re already competing well with competitors that have received union benefits forever.
And foreign makers will have the same problem if they start building here for the federal incentives

 

Not long in california, but I expect if they have trouble they will move the jobs to Austin, Berlin, and Shanghai. The job market is tight here, but they like the toyota truck plant in texas likely can be cheaper than the UAW plants. I doubt people want to move from texas to michigan, even if the salary is higher. I doubt the UAW will create many jobs, but they may try to get the toyota, bmw, tesla,vw, etc plants to unionize.

No foreign maker in the US uses UAW labor. The big difference was benefit costs for union jobs. The new contract adds a higher salary too.

 

no, but they'll have to compete for workers with just as the current non uaw shops do

 

Doesn't Ford have manufacturing just across the southern border?
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Pay is for employee retention. When it is cheaper to flip burgers or run a lawn care service, they are gone.

Bob Wilson

 

They do, but the cost of state govs shutting down the border is now a factor.

I believe most of their EV production is in the US, and building the battery plants here is insulation against changes to incentive requirements on that front.

 

The new UAW contract goes quickly to $40/hrs which with overtime and bonuses or around $90K/year + benefits for non collage workers. Tesla pays its line workers around $25/hr which workes out to around $61/hr with benefits. Top is $37/hr instead of $40/hr, but less benefits. In the past stock options and employee stock purchase plans had tesla workers making far more than their UAW counterparts. The big difference is also work rules, UAW work rules favor seniority and and are inflexible. Tesla and toyota have flexible work rules which are worse for older workers and workers that can't learn new skills, but better for younger workers, highly skilled workers, and quick learning workers. I can't see many new job openings in the big 3 that would get the better toyota or tesla workers in Texas to move up there. Tesla and toyota have much better jobs than flipping burgers, but those rates are rising fast as adults don't like getting treated badly in those jobs. Would you rather say I build cars for toyota or tesla or I flip burgers for mcDonalds? The contract may put pressure on them to unionize, which I think won't result in a union or higher benefits, but could be better hourly pay and better quality of work. Still its going to take ford or gm hour labor hours and more benefits to build an EV that the union and dealers don't really want.

The new contract is good for auto workers across the industry, including UAW foreign owned and tesla plants. I don't think it will hurt US makers in Trucks and midsize to large SUVs. It may hurt them in cars but they aren't selling that many anyway. The place where it will hurt the most is in compact suvs and crossovers like the rav4 and model Y.

 

I don't know, but probably just as long as Ford/GM/etc can continue letting strategic management decisions be dictated by the UAW

Mike

 

Ford CEO says company will rethink where it builds vehicles after last year's autoworkers strike (msn.com)

General Motors to cut 1,300 workers across two factories | CNN Business

Is there anyone who didn't see this coming?

Another case of the UAW cutting off its nose to spite its face.

Have others noticed UAW's President Fain's promise to unionize the American Transplants -Hyundai, Nissan, KIA, Toyota, Subaru, etc as well as Tesla is a complete disaster for the UAW and not one has been organized?