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Ford CEO considers US battery production launch critical
The semiconductor supply crisis in the automotive industry has prompted many players to consider reforming the component supply chain. The head of Ford Motor, for example, called for a large-scale production of traction batteries for future electric vehicles of the brand in the United States. The company is already in talks with the country’s authorities on this topic.
Image source: Ford Motor
Ford Motor finds itself in a delicate situation with the supply of traction batteries, regardless of the crisis in the semiconductor industry. The dispute between the South Korean companies SK Innovation and LG Energy Solution led to the fact that the first of them was banned for ten years from importing batteries into the United States and producing on the territory of the country, violating the intellectual property rights of the second of the companies. It was only in view of Ford’s need for traction batteries that the US authorities made an exception that will allow SK Innovation to supply this customer with its batteries for four years. The leadership of Ford Motor calls on the South Korean partners to conclude an amicable agreement, but so far the parties have enough disagreements on its terms.
Until 2025, Ford Motor intends to invest at least $ 22 billion in the development of electric vehicles. Manufacturing transformations will bring significant changes to the labor market, said Jim Farley, CEO, quoted by Bloomberg. At one of the industry events, he also said that the American auto industry cannot allow a repeat of the situation with the shortage of components that arose as a result of the concentration of their production in Taiwan. For this, it is necessary to stimulate the organization in the United States of large-scale production of traction batteries, as added by Jim Farley. The auto giant is already in talks with the government on this topic.
The head of Ford also stressed the importance of reducing warranty costs — the company aims to achieve annual savings of $ 1 to $ 2 billion in this area. Monetization of information services will also be a significant source of income for Ford under the new CEO. Already now this market is capable of bringing in $ 4 billion annually. Money can be received not only from the sale of services to customers, but also from cooperation with other companies that are interested in obtaining information about Ford customers. Now this segment is in its infancy, it will become significantly larger, according to the head of the company.