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United States Businesses Power Transportation

Ford Pauses Construction On $3.5 Billion EV Battery Plant In Michigan (detroitnews.com) 134

An anonymous reader quotes a report from Ars Technica: Ford Motor Company on Monday halted construction of a $3.5 billion electric vehicle battery plant project in the Marshall area amid months of battles with local residents, Republicans in Congress over its use of Chinese technology and an auto industry strike in its second week. "We're pausing work, and we're going to limit spending on construction at Marshall until we're confident about our ability to competitively run the plant," Ford spokesman T.R. Reid told The Detroit News on Monday. Reid said a "number of considerations" were at play in the company's business decision, but wouldn't say whether the United Auto Workers' ongoing strike of Ford and its crosstown rivals was a factor. "We haven't made a final decision about the investment there," Reid said of the Marshall site. The pause in construction is effective Monday, Reid said.

The Dearborn-based automaker announced on Feb. 13 that it planned to invest about $3.5 billion in an electric vehicle battery plant park in Marshall. As part of the deal, Ford secured about $210 million in direct tax incentives plus a 15-year property tax abatement worth about $775 million over the life of the tax break. There was also roughly $750 million set aside for site prep at the location, with a $299 million earmark allocated for the Marshall Area Economic Development Alliance and a $330 million earmark pushed toward the Michigan Department of Transportation budget for expanding roadways and freeway connections for the presumed Ford plant's truck traffic. Another $120 million was routed to MAEDA earlier this month through the SOAR fund. [...] The 2.5-million-square-foot battery park was to be run by a wholly-owned subsidiary of Ford called "Blue Oval Battery Park Michigan." The plant would employ 2,500 people with pay ranging from $20 to $50 an hour.

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Ford Pauses Construction On $3.5 Billion EV Battery Plant In Michigan

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  • Just have robots build the whole car from scratch. Manufacturability should be prioritized over feature, feature should be more important than form. If it can't be fully made by a robot don't design the product. Actually when are we going to have AI design the car itself? Is there like a midjourney-equivalent for CAD? And there should be an AI for ensuring your CAD design is fully robot-makeable.

    • Re:Automate (Score:5, Insightful)

      by olsmeister ( 1488789 ) on Tuesday September 26, 2023 @08:17AM (#63877953)
      That all sounds fantastic until the AI hallucinates you a Ford Pinto.
    • Re:Automate (Score:5, Insightful)

      by cstacy ( 534252 ) on Tuesday September 26, 2023 @08:37AM (#63877999)

      Actually when are we going to have AI design the car itself? Is there like a midjourney-equivalent for CAD?

      This was already done earlier this year. (Can't remember exactly what the machine was, car or aircraft?) Anyway, the result was a completely non-functional assemblage of parts.

      Generative AI has no idea what it is saying, does not have any kind of "facts" in it, and does not have any kind of "logic" or "reasoning" in it. That's just not what that technology does.

      Turns out that when you ask it to design a physical device, which relies on mechanics and physics, it produces an intricate mess of random parts that can't possibly work at all.

      Probabistically, those parts might appear in a working device. But unlike text/speech, it's easier to see how random the output really is.

      Of course, other kinds of so-called "AI" are used to help design real useful things all the time and have been doing so for decades. Generative AI is only good for making weird pictures.

      • by Junta ( 36770 )

        I know one instance where a system was asked to create a schematic for a rocket engine. It was, at a glance to the casual observer, credible looking, but a review by an actual engineer quickly showed that it would fail to work in quite the catastrophic, dangerous way. The engineer was surprised by how relevant and believable the design looked yet how atrocious the design was.

        Besides, the *design* phase of a mass produced product isn't the sore spot anyway that would really *need* labor reduction. Manufact

        • by tragedy ( 27079 )

          Just like when AI was asked to create recipes from lists of items people had in the kitchen. It had no problem incorporating cleaning products and other poisons. The recipes looked legit on the surface, of course, it's just that the tiniest bit of common sense makes it clear that it was poison.

    • by Tablizer ( 95088 )

      > Manufacturability should be prioritized over feature

      The second tends to be more profitable in the US. The upper middle class buy for features, and the rest buy used trucks anyhow.

      > Just have robots build the whole car from scratch

      That's proven tricky at Tesla. They are not as flexible to adjust as humans, and bot glitches need a lot of tech babysitting.

      • by msauve ( 701917 )
        >The upper middle class buy for features, and the rest buy used trucks anyhow.

        That would be "form." I'd wager that the majority of pickup trucks seldom see much more than a cooler or groceries put in the bed "feature." And that's because there's not enough room in the cab.
        • With the wide spread use of SUVs, I feel like trucks are used as much for work as anything else. I'd say half the trucks I see are work trucks full of work related items, typically construction or gardening. Others are clearly weekend warrior stuff and then of course some are exactly as you say, just people that like to drive trucks.

          Of course, now a lot of consumer non-work trucks have a bigger cab with 4 doors and a smaller bed, which to mean just seems odd and kind of pointless.

    • by sjames ( 1099 )

      Current AI is nothing like up to that task. The current AI is more analogous to small sections of brain (that doesn't include ant of the frontal lobe) somehow kept alive. ChatGPT's output is more akin to a brain injured person with fluent aphasia than anything else. It writes great ad copy (since ads typically don't concern themselves with accuracy or even truth).

    • "Manufacturability should be prioritized over feature" - How Henry Ford of you. What if enough people are willing to pay for features that are hard to manufacture? They end up buying from someone else.

      "feature should be more important than form" - Again, what if the people PAYING are more interested in form that feature? People aren't always logical and don't make the best choices. But in the end, people choose what they choose and when they are paying they often get what they want.

      "If it can't be fully mad

  • At one time I would have thought this to be a setback for EV's, but now it seems like like a setback for Ford. They can't seem to make and sell EV's at a profit, and it's a fast-growing niche. However, what Ford can turn a profit on is $80K pickup truck. That has probably peaked as well, with the Covid money cannon and supply shortages receding - but I can't see demand drying up too much or too fast. Unless a significant number of pickup buyers actually go for the Cybertruck in which case Ford is in deep
    • It doesn't help that all the competitor EV designs except maybe Mercedes suck. Furthermore Tesla has better CPU and sensor coverage than any other car and at least has the aura/illusion of being much closer to full self-driving. None of the other EVs seem like they're the future of vehicles.

      • Re: (Score:2, Troll)

        by Freischutz ( 4776131 )

        It doesn't help that all the competitor EV designs except maybe Mercedes suck. Furthermore Tesla has better CPU and sensor coverage than any other car and at least has the aura/illusion of being much closer to full self-driving. None of the other EVs seem like they're the future of vehicles.

        All of Elon's competitors suck except Mercedes?? Now that's giving Elon Musk far too much credit. Teslas are overpiced, when you buy a Tesla you get worse than Lada build quality at Audi prices with a driver interface full of touch screens that multiply your chances of ending up in a car crash and a battery pack that can't stand up to more than a few centimetres of water. There are plenty of other luxury brands with cars that beat Tesla. There are even some non-luxury brands that are as good or better than

        • by nealric ( 3647765 ) on Tuesday September 26, 2023 @09:01AM (#63878059)

          I can't stand Musk and wish Tesla's competitors would be better, but this is just denying reality. Worse than a Lada? Tesla build quality certainly has a history of uneveness, but the vast majority of Teslas are fine (if not spectacular). Just about every manufacturer has larded up interiors with touchscreens, but at least Tesla's software mostly works (same cannot be said for manufacturers like VW).

          The truth is that Tesla is still offering more performance, more range, and a vastly better charging network for a lower price. An AWD Ioniq 5 starts at $49k, and you have to deal with Hyundai dealers who still tend to focus on selling to people with 500 credit scores while pushing the "truecoat" and 7 year loans at double digit interest rates. The Model Y AWD gets 276 of real world range (third party testing)

          https://insideevs.com/reviews/... [insideevs.com]

          The Ioniq 5 gets 225 on the same test cycle. And Hyundai/Kia are probably the best non-Tesla EVs out there in the mass market price space. There's a reason why Tesla still sells the majority of EVs in the U.S. Only a tiny fraction of those are foaming at the mouth Elon fanboys.

          My point is not that "Tesla is so great", but that the pre-EV automakers need to get better. Rivian and Lucid are also light years ahead of the established automakers, but they don't currently compete in the mass market.

          • The truth is that Tesla is still offering more performance, more range,...

            Real-world tests have shown Teslas to have the same range as its competitors. The range that Tesla lists for their vehicles is pure fantasy.

          • a vastly better charging network

            A vastly better charging network that's soon to be open to owners of competitor's EVs.

          • ...pre-EV automakers need to get better. Rivian and Lucid are also light years ahead of the established automakers, but they don't currently compete in the mass market.

            Rivian and Lucid (much like Tesla) charge damn near six figures or more for their products. The "base" models are $70K+.

            Really not sure how we're still selling the idea this pre-product is 'affordable' for 90% of the not-so-mass-market when it's still just a luxury toy, which about as much support on an interstate system. Prices would need to drop by at least 50% in order for any 'mass' market to be included.

            And no. Forcing gas to $10/gallon in the US isn't going to magically make a $70K EV 'affordable'

            • The base Tesla Model 3 is selling at $36k for in-inventory models in my market. With the tax credit, it's at $29k. Keep in mind that the average new car (of any propulsion type) is at around $50k now. Car affordability is a much bigger problem than EVs.

              Weird straw man on the $10 a gallon. Nobody is talking about that. I think everyone recognizes that there needs to be more affordable EV options. There are some additional ones coming down the pike. GM is slated to release the EV Equinox next year, which is s

        • I wouldn't buy a Hyundai, they have an atrocious recall rate on their gassers. I don't trust they will do EVs right either.

      • by Junta ( 36770 )

        I'd say that Tesla is the one that sucks, at least at the 'boring' parts of being a car.

        You want to have a physical control for your vents? Tough luck, that's not 'futuristic enough', you'll have to use the touchscreen to somehow try to steer it.

        My colleague had to use his NFC card, as phone as key was horribly unreliable. Fine, I can see how that can be fickle, but the fact that Tesla *exclusively* banked on that as the wireless technology and failed to do keyfobs was madness.

        As of their next iteration, y

      • None of the other EVs seem like they're the future of vehicles.

        That entirely depends on how many customers actually want a vehicle that is trying to be the future of vehicles, rather than an otherwise normal vehicle which just happens to run on electrons rather than dead dinosaur juice.

    • From the photos I've seen the cybertruck is more competing with a Subaru Baja type thing than an F150
      • The cybertruck's bed is 6 1/2' long and 60" to 65" wide, so it's the same length and somewhat wider than the middle-sized F150 bed. So, not this [reddit.com].

        I just don't know how many people will want a pure EV truck though, with the limited range, especially for towing. And then there's the looks.

        • Ah thanks for the measurements, I suppose it is more functional than it looks! I could be wrong but aren't EVs good for towing from a torque standpoint? I wonder if someone will make a range extender that can sit in the bed... although maybe the specs on such a generator would make it better to just get a hybrid vehicle instead.
          • Yeah. The one thing I can imaging maybe working is a range extender built into the travel trailer. Otherwise loading and unloading and storing a separate range extender big enough to really be useful would be a huge hassle. But like you said, just getting a hybrid PHEV in the first place is sure to win out.
          • Hybrids are fairly useless for towing. The benefit of a hybrid is Regen. The trailer has its own brakes that don't do Regen, and the trailer will tend to try to precede you if you do all the braking with the vehicle.

    • by RobinH ( 124750 )
      They've done a great job making pickup trucks far more fuel efficient, and the F-150 lightning is a consumer hit, but you're right that they have some problems. Specifically, we're now in a period of high capital cost (i.e. high interest rates), and that's not going anywhere for a decade or more because it's mostly due to demographics. So when a consumer looks at an F-150 they see a higher up front cost offset by the promise of lower fuel (or power) costs over the life of the vehicle. That purchase is co
      • But even when Ford sells an EV - which they do, I'm not saying they're bad - it's still a problem for Ford, because their production costs are way too high:

        Ford lost a billion dollars on its EV unit last quarter. The company loses money on every Ford Lightning it sells â" and that was before it knocked thousands of dollars off the sticker price this summer, trying to keep up with a Tesla-triggered price war that's pulling EV prices down.

        This is where Tesla was like 5 years ago. Except Tesla didn't h

        • by RobinH ( 124750 )
          The up front cost problem affects many things related to the green transition. Take natural gas power plants for example. They're relatively cheap to construct so require little capital, and the cost of the fuel is paid for as you consume it. Windmills and solar panels are comparatively very expensive to construct, and have fairly long payback periods. That means those technologies look less attractive in a high interest rate environment.
      • by guruevi ( 827432 )

        First-quarter sales totaled about 4,300 units and a few hundred more units in the second quarter. Last year was about 2000 units per quarter, and they sold 15,617 throughout the entire year, including pre-orders.

        They were hoping to hit 60,000 units last year and they revamped the factory to pump out 150,000 units per year, a huge investment. They're clearly not hitting that mark, with the factory frequently stopping work due to lack of work, so I wouldn't say they are a hit.

        I just checked my local dealer, t

        • by RobinH ( 124750 )
          I just meant it was a hit because lot of people want one. But the price isn't right (based on the points I made above).
          • by guruevi ( 827432 )

            I think every guy wants a Ferrari, just because everyone wants one, doesn't make for a huge market. On paper, EVs are great, in practice not so much and the market reflects that.

    • by Locutus ( 9039 )
      Ford and GM have made their trucks into EVs and therefore they need huge batteries to get anything near 300 mile range and that's empty of cargo.
      Tesla on the other hand makes EVs into a truck. What I'm getting at is the classic companies designed their utility EVs by using an existing ICE design and converted them into an EV. They are heavy and not aerodynamic and little effort was put into improving either of those and therefore they consume large amounts of energy to move down the road. Tesla engineers
    • by Chelloveck ( 14643 ) on Tuesday September 26, 2023 @09:47AM (#63878171)

      It's not a setback for EVs or Ford. It's typical corporate posturing to try to get concessions from the union and/or tax breaks from local government. "Well gee, we'd *planned* to build this big plant with lots of jobs, but given our current expenses we just can't do it. Now, if someone could maybe find a way to lower our expenses a little, we could build this plant so you can all benefit..."

      Step 3 isn't so mysterious in this one.

      1. Start building a plant with lots of hype for jobs and taxes.
      2. Stop building and claim economic hardship.
      3. Alter the terms of the deal.
      4. PROFIT!

      • by Reziac ( 43301 ) *

        It can also go the other way around. Company project gets to where it's made too much investment to easily back out, and the union says, "By the way, now it's going to cost you THIS MUCH MORE to finish the project."

        Of course, there's no rule that both can't be doing this, simultaneously.

  • cooked (Score:2, Troll)

    by groobly ( 6155920 )

    Face it, Michiganders' goose is cooked, and has been for quite a while. All hail UAW, hero of the unemployed.

  • But... (and yes, that's a dickish way to start this)... if you insist on keeping your relationship with the company adversarial and combative, expect some fallout. From the summary it seems like a lot of things got done, and a lot of costs are sunk. For them to walk away there has to have been significant gaps. Large, successful companies don't generally walk away from something significant just because there are disagreements.

    "...until we're confident about our ability to competitively run the plant."

    That

    • Large, successful companies don't generally walk away from something significant just because there are disagreements.

      Don't fall for the sunk cost fallacy. Companies walk away from large projects all the time. I can't count the number of times I've seen companies I've worked for cancel projects they've spend many millions on. It doesn't matter how much you've spent, it's what you still need to spend (and how much you think it will earn) that counts.

      • Not falling for it. In fact, pointing out that they're (probably correctly) willing to walk away from them. They aren't falling for it.

  • I own a Ford Mach-e. I have put 20,000 miles on it in slightly less than a year. I love having an EV. I do also have a 1999 Lexus V8 ICE car, but prefer the EV. However, I continually see anti-EV comments in online communities, where the normal comment is something along the line of "the government is forcing EV's down our throats." Today, I saw my first Ford F150 Lightning while cruising 85MPH on the freeway. Here in California, I see a few Mach-e cars daily, along with a plethora of Tesla cars.
    However,
    • However, I understand this is not the case in the deep South and some midwestern states.

      How do you define "deep south"? Does that include Texas? I recall seeing plenty of BEVs on the road in Texas. Talking with a BEV owner about dealing with range loss from cabin heating his response was. "This is Texas." I followed up with a question on air conditioning and he mentioned that with some experimentation he has some idea on when opening windows is more energy efficient than running the air conditioner.

      I've seen a few BEVs on the road in the Midwest USA, which is where I live now. Some Tesla

      • "The point is that BEVs do appear to be getting more popular and more practical, but you'll have to pry 4WD trucks from some cold dead hands."

        I imagine.

        Oddly, I saw my first F150 Lightning today on the road and it wore Texas plates. I figure places like Austin or Dallas are less anti-EV than places like Lubbock or Odessa. My step-mother-in-law is from a small town in Kansas. I just looked on PlugShare and found not one public EV charging station in town. The nearest one is about five miles outside of town
  • As happens so often, the US actively discourages industry. Then we whine about how all the blue collar jobs are leaving the country.

    Good essay/rant: https://www.noahpinion.blog/p/... [noahpinion.blog]

  • Sorry people, it's 2023. If we want to make new toys, we have to play nice together.
  • China is currently the technology leader in lithium battery design and production. They also own the key patents on LFP batteries. Using technology from China in lithium batteries is simply a case of using the best designs and technology available.

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