Posted October 01, 2021
By Aaron Gentzler
Ford: “All-Electric Arena”
Ford plans to invest $11 billion to build out its EV manufacturing capabilities, including new factories in Tennessee and Kentucky.
“The investment includes $7 billion from Ford and about $4.4 billion from its joint venture with battery partner SK Innovation of South Korea,” says an article at the Detroit Free Press.
And adds: “Two battery plants will be built in Glendale, Kentucky. A battery plant and truck assembly plant will be built in Stanton, Tennessee. It all pencils out to 5,000 jobs in Kentucky and 5,800 jobs in Tennessee.”
“This is a really important strategic bet,” says Ford CEO Jim Farley. “[Ford] is positioned to truly compete in the all-electric arena.”
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Your Rundown for Friday, October 1, 2021...
Earlier this year, we reported Ford’s unveiling two EV versions of classic models -- Ford F-150 Lightning and Mustang Mach-E.
According to Farley, “We already have sold out of our first generation of electric vehicles… and we’re dealing with [a] capacity issue now,” Farley says. Meaning: the demand is there.
The solution to tight supply chains?
“We’re speeding up this enormous investment,” Mr. Farley says. “We’re actually spending the money, building the buildings, insourcing the batteries. That’s a significant strategic change over supply-chain management.”
Insourcing, in other words. (As opposed to outsourcing.)
The Wall Street Journal notes: “Many car companies are bringing more of the [battery] development and manufacturing in house to access technical expertise and lower costs.
“Bringing the battery supply chain to the U.S. insulates Ford from being held hostage by battery shortages the way the industry has been kneecapped by the global semiconductor chip shortage,” says the Free Press.
“Companies in the U.S. want a secure, local supply chain,” the article claims. “Where batteries are made, and where they’re shipped, will be key to automakers’ strength in coming years.”
Market Rundown for Friday, Oct. 1, 2021
S&P 500 futures are up 0.4% to to 4,315.
Oil is down 0.48% to $74.67 for a barrel of West Texas crude.
Gold is up $1.30 per ounce to $1,758.70.
Bitcoin’s up 8.2% to $47,350.
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We’ll be back Monday; until then, enjoy the weekend.
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