Ford Motor Co. said late Monday that it has halted work on a $3.5 billion battery plant in Michigan, just days after the automaker made concessions to its striking workers.
“We are pausing work and limiting expenditure on the construction of the [Marshall, Mich.] project until we are confident in our ability to operate the plant competitively,” said a Ford F,
said spokesperson. “We have not yet made a final decision on the planned investment there.”
Ford said in February it was investing $3.5 billion to build the plant in Marshall, about 100 miles west of Detroit. The plant, which Ford called BlueOval Battery Park Michigan, is part of Ford’s “commitment to American manufacturing,” the company said at the time.
At the start of production, scheduled for 2026, the factory is expected to employ approximately 2,500 workers. The $3.5 billion investment is part of Ford’s commitment to invest more than $50 billion in electric vehicles worldwide during the year.
Workers in some parts of a Ford plant in Michigan that makes Broncos and Rangers have been on strike since Sept. 14, part of a first wave of labor action by the United Auto Workers that also affects one General Motors Co. plant. GM hits.
and Stellantis NV STLA,
after the union’s contract expired without progress in negotiations.
Read more: UAW strike: 5 things to know
The UAW expanded the strike Friday to 38 GM and Stellantis distribution centers in 20 states, but did not expand the labor action at Ford because it said it had won some concessions for the automaker, such as a cost-of-living refund. adjustments.
Ford showed the UAW it was “serious about reaching a deal,” union leaders said at the time.
The strike comes at a time when traditional carmakers have little time to invest in electric cars, with batteries being a particularly crucial – and pricey – component.