Ford head says GOP tax bill provision could 'imperil' battery factory
By Nora Eckert and David Shepardson
DETROIT/WASHINGTON (Reuters) -Ford Executive Chair Bill Ford on Thursday sounded the alarm over the potential for the U.S. government to eliminate production tax credits that support the manufacturing of electric vehicle batteries using Chinese technology.
The disappearance of the credits would threaten Ford's projected $3 billion investment in a Marshall, Michigan, plant that is 60% complete and slated to employ 1,700 workers.
"If it doesn't stay, it will imperil what we do in Marshall," Ford said at a policy conference of the factory 100 miles (161 km) west of Detroit. "We made a certain investment based upon a policy that was in place. It's not fair to change policies after all the expenditure has been made."
Ford said the plant, which was announced in February 2023, is expected to begin producing batteries in 2026.
The tax-reform bill passed by the U.S. House of Representatives this month could bar lucrative tax credits for batteries produced with components made by some Chinese companies or under a license agreement with Chinese firms.
Ford's factory would make battery cells using tech from Chinese battery giant CATL.
"I'm spending a lot of time talking about that with politicians. It's a federal issue, but it's also a state issue," Ford said on Thursday.
Ford received a reduced incentive package from Michigan last year for the battery plant after it cut expected production there to match slowing demand for electric vehicles. Since the automaker announced the plant, it has drawn scrutiny from some lawmakers for its ties to the Chinese company.
The company touted a letter from more than 100 Marshall-area business owners, school leaders, elected officials calling on Congress to retain the tax incentives, which noted the area has "lost thousands of jobs over the past several years."
The House bill would also end a $7,500 tax credit for new EVs, impose a new $250 annual fee on EVs for road repair costs and repeal vehicle emissions rules designed to prod automakers into building more EVs. The U.S. Senate plans to take up the bill and make changes in the coming month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
27 minutes ago
- Newsweek
US Simulates Missile Strikes on Warships at China Choke Point
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The United States has conducted a simulated military operation using anti-ship weapons during a war game in the Philippines, as China expands its naval presence in nearby contested waters. Newsweek has reached out to the Chinese Defense Ministry via email for comment. Why It Matters The Philippines—Washington's mutual defense treaty ally—is part of the First Island Chain, along with Japan and Taiwan, under the U.S. containment strategy, which seeks to restrict China's naval access to the wider Pacific Ocean by leveraging America-aligned territories. According to a Pentagon assessment, the Chinese military has the largest navy in the world by hull count, with more than 370 ships and submarines in service. The Chinese navy has been operating around the Philippines, including deploying an aircraft carrier in late May. During the ongoing Exercise KAMANDAG 9, the U.S. military deployed the Navy-Marine Expeditionary Ship Interdiction System (NMESIS) to the Philippines' Batanes Islands in the Luzon Strait—a key gateway for China to access the waters east of the First Island Chain. What To Know The U.S. Marine Corps said that it had strategically positioned the NMESIS—a ground-based launcher armed with two Naval Strike Missiles with a 115-mile range—on Sunday on one of the Batanes Islands for simulated maritime interdiction during KAMANDAG 9. Maritime interdiction is defined by NATO as a naval operation intended to "delay, disrupt, or destroy" enemy forces or supplies en route to the battle area. The simulated operation was part of a rehearsal to secure and defend key maritime terrain, the U.S. Marine Corps stated. Following insertion by a transport aircraft onto the island, the anti-ship weapon was remotely operated from the airfield into a concealed position to interdict maritime targets, the U.S. Marine Corps added, supporting the maintenance of open sea lines of communication. Meanwhile, a "kill web" was formed to conduct maritime strikes, employing intelligence, surveillance, and reconnaissance assets to "find, fix, and track" targets. According to the U.S. Marine Corps, no live-fire was conducted during each fire support rehearsal. The United States Marine Corps stages the Navy-Marine Expeditionary Ship Interdiction System to the Philippines' Batanes Islands as a part of Exercise KAMANDAG 9 on May 25, 2025. The United States Marine Corps stages the Navy-Marine Expeditionary Ship Interdiction System to the Philippines' Batanes Islands as a part of Exercise KAMANDAG 9 on May 25, 2025. Cpl. Malia Sparks/U.S. Marine Corps This simulated Maritime Key Terrain Security Operation (MKTSO) was carried out by the Third Marine Littoral Regiment, a Hawaii-based U.S. Marine Corps unit that specializes in amphibious and littoral, or shoreline, warfare operations and deploys across the Indo-Pacific region. In late April, the U.S. conducted another MKTSO using the NMESIS on Batan Island, simulating anti-ship strikes. The event coincided with the transit of a Chinese aircraft carrier through the Luzon Strait, moving between the Philippine Sea and the South China Sea. What People Are Saying The U.S. Third Marine Division said: "The synchronization of U.S.-Philippine forces during the KAMANDAG 9 MKTSO showcased the increased ability of the partnered militaries to coordinate complex, all-domain operations and further demonstrated the ironclad U.S.-Philippine alliance." Lieutenant Colonel Patrick Schrafft, U.S. Third Marine Littoral Regiment's fire support coordinator, said: "The constructive kills executed during the KAMANDAG 9 MKTSO are yet another example of the [Third Marine Littoral Regiment]'s proven value proposition to the Combined and Joint Force." What Happens Next The U.S. is likely to continue its military exercises with the Philippines featuring anti-ship weapons to counter China's naval threat. It remains unclear whether the NMESIS will stay in the Southeast Asian nation after Exercise KAMANDAG 9 concludes on Friday.
Business Insider
an hour ago
- Business Insider
Hims & Hers to cut 68 employees, or 4% of workforce, Reuters reports
Hims & Hers will cut 68 employees, or about 4% of its workforce, as it adjusts to the U.S. ban on manufacturing mass copies of Wegovy, Amina Niasse of Reuters reports. These changes are focused on sharpening how we execute, without affecting our priorities or the specialties we're committed to,' a company spokesperson said regarding the layoffs, according to Reuters. Confident Investing Starts Here:
Business Insider
2 hours ago
- Business Insider
‘Keep on Buying,' Says Morgan Stanley About Tesla Stock
Tesla (NASDAQ:TSLA) stock is back in focus as Elon Musk shifts gears, stepping away from political headlines and returning his attention to the company that made him a household name. Confident Investing Starts Here: The move was no doubt greeted enthusiastically by Tesla investors, who have grown frustrated with Musk's high-profile distractions since becoming Trump's 'first buddy.' But beyond the optics, Morgan Stanley analyst Adam Jonas, a longtime Tesla bull, believes there's more at stake, pointing to broader strategic implications tied to Musk's renewed commitment. 'In our view,' Jonas noted, 'Tesla's expertise in manufacturing, data collection, robotics/ physical AI, energy, supply chain and infrastructure are more critical than ever before to put the US on an even footing with China in embodied AI.' Jonas points to China's rapid progress in humanoid robotics – what he calls the 'Humanoid Olympics.' After showcasing robots running a half marathon and competing in combat sports, China is now moving toward full-on humanoid games. 'China's gamification of robotic innovation is accelerating its path to AI supremacy,' says Jonas, who wonders if the US should fight back with a 'Humanoid Ninja Warrior.' The specter of Chinese EV maker BYD looms large too. The company announced significant price reductions across its entire lineup recently – ranging from 10% to nearly 30%. Notably, the price of its budget-friendly Seagull model was slashed to just RMB 55,800 (under $8,000). 'If you want evidence of the 'race to the bottom' in global EV prices, look no further,' says Jonas. The analyst also wonders if Musk might be having a change of heart regarding one possible business venture. For years, he has dismissed the idea of Tesla building eVTOLs or drones, pointing to concerns like noise, privacy issues, public nuisance, and inadequate battery energy density. However, during a recent all-hands meeting, when asked about the possibility of making a plane, Musk paused before replying that the company is currently 'stretched pretty thin.' 'In our opinion,' says Jonas, 'that's a decidedly different type of answer. Is Tesla an aviation/defense-tech company in auto/consumer clothing?' As for the upcoming Cybercab launch, slated for June 12, as with most highly anticipated Tesla events, Jonas thinks it's best to keep a lid on expectations. That said, he'll be watching closely for ongoing updates in the following days and weeks – particularly regarding network performance and growth metrics like vehicle count, mileage, and trip volume. All in all, Jonas remains on TSLA's side, assigning an Overweight (i.e., Buy) rating with a $410 price target, implying potential upside of 18% from current levels. (To watch Jonas's track record, click here) That's a bull's take, but not one the majority of Wall Street analysts share; TSLA stock only claims a Hold consensus rating, based on a mix of 16 Buys, 10 Holds and 11 Sells. Going by the $282.70 average price target, a year from now, shares will be changing hands for an 18% discount. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
