We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford (F) Suspends $3.5B Michigan Battery Plant's Production
Read MoreHide Full Article
Ford Motor Company (F - Free Report) announced that it temporarily put the work in its $3.5-billion battery facility in Michigan on hold. The plant makes economical lithium iron phosphate batteries. The automaker said that the plant would remain shut until the company regains its confidence to operate it competitively.
The legendary automaker refused to disclose any specific reason behind the suspension but stated that there were a number of considerations.
In February, Ford announced plans to set up a plant in Michigan to localize the production of batteries in the United States. Per the agreement with Chinese partner CATL, Ford’s subsidiary would make the battery cells using CATL’s LFP battery cell knowledge and service. There is no clarity on the length of the suspension.
Ford is currently negotiating a contract with the United Auto Workers (UAW). The halt came over a week after UAW launched a strike against Ford, General Motors and Stellantis. Despite raising its offer to UAW, Ford failed to reach an agreement. The decision also follows an investigation launched by congressional committees into the automaker’s licensing deal with CATL in July.
The UAW and Congress want the auto manufacturers to pay plant workers the same as assembly and engine plant workers.
The Michigan facility was part of Ford’s commitment to invest $50 billion in electric vehicles globally through 2026. The automaker plans to reach an annualized EV production capacity of 600,000 units globally by the end of this year and 2 million EVs by the end of 2026.
Gretchen Whitmer, Governor of Michigan, said that he will continue to push for successful negotiations between the Big Three and UAW to get local workers back to work.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimate for 2023 and 2024 have moved north by 33 cents and 68 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 7 cents and 9 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 125.7%, respectively. The EPS estimate for 2024 has moved north by 2 cents in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ford (F) Suspends $3.5B Michigan Battery Plant's Production
Ford Motor Company (F - Free Report) announced that it temporarily put the work in its $3.5-billion battery facility in Michigan on hold. The plant makes economical lithium iron phosphate batteries. The automaker said that the plant would remain shut until the company regains its confidence to operate it competitively.
The legendary automaker refused to disclose any specific reason behind the suspension but stated that there were a number of considerations.
In February, Ford announced plans to set up a plant in Michigan to localize the production of batteries in the United States. Per the agreement with Chinese partner CATL, Ford’s subsidiary would make the battery cells using CATL’s LFP battery cell knowledge and service. There is no clarity on the length of the suspension.
Ford is currently negotiating a contract with the United Auto Workers (UAW). The halt came over a week after UAW launched a strike against Ford, General Motors and Stellantis. Despite raising its offer to UAW, Ford failed to reach an agreement. The decision also follows an investigation launched by congressional committees into the automaker’s licensing deal with CATL in July.
The UAW and Congress want the auto manufacturers to pay plant workers the same as assembly and engine plant workers.
The Michigan facility was part of Ford’s commitment to invest $50 billion in electric vehicles globally through 2026. The automaker plans to reach an annualized EV production capacity of 600,000 units globally by the end of this year and 2 million EVs by the end of 2026.
Gretchen Whitmer, Governor of Michigan, said that he will continue to push for successful negotiations between the Big Three and UAW to get local workers back to work.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Li Auto (LI - Free Report) , Gentex Corporation (GNTX - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimate for 2023 and 2024 have moved north by 33 cents and 68 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 7 cents and 9 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 125.7%, respectively. The EPS estimate for 2024 has moved north by 2 cents in the past seven days.