Staff Reports
In a massive blow to President Joe Biden’s forced transition to electric vehicles, the United Auto Workers (UAW) strike has caused major turmoil for the automotive industry. Now, even Ford Motor Company has taken a step back by announcing the pause of construction on a billion-dollar plant in Michigan involving a Chinese electric vehicle battery company.
Ford’s spokesperson, T.R. Reid, stated that the company is halting work and limiting spending on the Marshall project until they are confident in their ability to compete in the electric vehicle market. They have not made any final decisions about the planned investment with the Chinese firm, Contemporary Amperex Technology (CATL), which would have manufactured battery cells at the Michigan plant.
This setback for Ford comes at a time when they are already experiencing tremendous losses in their electric vehicle production. Reports indicate that the company is projected to lose a staggering $4.5 billion on electric vehicles this year alone, with a loss of $1.8 billion so far. To put it simply, Ford is hemorrhaging money each time they produce an electric car, losing around $60,000 per vehicle.
US President Joe Biden said he supports the United Auto Workers union as the strike against the Detroit Three automakers entered its tenth day. Biden will travel to Michigan to show support for workers and visit a UAW picket line https://t.co/wfrK06swTX pic.twitter.com/yVQtOdWmIk
— Reuters (@Reuters) September 26, 2023
This dire situation puts the Biden administration in a difficult position as they continue to advocate for further taxpayer subsidies to offset the tremendous losses in the electric vehicle sector. Despite these mounting financial woes, President Biden remains steadfast in his commitment to electric vehicle mandates for private companies.
It is crucial to recognize the flaws in President Biden’s climate agenda. Mandating a transition to electric vehicles may sound appealing to some, but it is clear that the market is not ready for such a drastic shift. Instead of forcing companies like Ford to invest billions in unprofitable endeavors, the government should focus on supporting innovation and providing a supportive environment for businesses to thrive.
President Biden’s visit to the UAW picket line in Wayne, Michigan may provide some temporary political points, but it does nothing to address the core issues facing the automotive industry. It is high time that our government leaders reevaluate their approach and stop burdening businesses and taxpayers with costly and ineffective mandates. Let the market decide the future of the automotive industry, not government interference.
