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In its latest setback, Ford is cutting back on another significant EV investment. The company is scaling back plans at its $3.5B EV battery plant in Michigan as it adjusts to market demand.

Ford said it was “re-timing and resizing some investments” in a statement Tuesday. Although it remains bullish on its long-term strategy, Ford is reducing its investment and cutting jobs at its Michigan EV battery plant.

The company is cutting production capacity at the facility by over 40%. Ford now expects the facility to produce around 20 GWh, a big difference from the 35 GWh initially expected.

Ford is also reducing its investment in the facility by nearly $1.5B while cutting the expected number of jobs to 1,700.

After announcing the facility in Marshall, MI, this February, initial plans called for:

  • 2,500 new jobs
  • 35 GWh annual output of LFP batteries, starting in 2026
  • 400,000 EVs in 2026, or 20% of Ford’s expected 2M output.

Those plans are now being scaled back drastically. The plant will now produce enough LFP batteries for around 230,000 EVs annually.

Ford-F-150-Lightning-Family
Ford F-150 Lightning lineup (Source: Ford)

Ford’s chief communications officer, Mark Truby, told reporters (via Bloomberg) that EV adoption “is not growing at the pace” they expected. Truby said Ford wants to be “really disciplined” about spending and matching future demand.

Ford to scale back Michigan EV plant in latest setback

Ford’s EV plant in Michigan was quickly targeted over its partnership with Chinese battery giant CATL. Plans called for Ford to own the plant while licensing CATL’s tech to build the LFP batteries.

The move is part of Ford’s plans to scale back EV investments. Ford said it was delaying its 600,000 run rate goal until next year over the summer.

Ford-Michigan-EV-battery-plant
Ford F-150 Lightning production (Source: Ford)

More recently, it cut one of three shifts at its Rouge EV complex, where the F-150 Lightning is built. Ford’s CFO John Lawler explained last month the company has also “taken out some Mach-E production.

Lawler added that Ford is “slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.”

Ford is pushing back around $12 billion in spending on EVs. Sales of Ford’s electric pickup fell 46% in Q3. The company lost around $36,000 on every EV sold during the quarter.

Ford-Michigan-EV-plant
2023 Ford Mustang Mach-E (Source: Ford)

Truby said the decision was based on “demand and the expected growth for EVs, our business plans, our product cycle plans,” and the ability to create a sustainable plant.

He added, “Labor costs was one of the factors we were looking at.” Ford reached an agreement with the UAW, which increased wages by 25%.

Despite this, Ford said it plans to move ahead with the project. It expects to begin producing LFP battery cells in 2026.

Electrek’s Take

Plans to scale back its Michigan EV battery plant is the latest setback for Ford. The company continues delaying EV investments alongside rival General Motors.

GM revealed it was pushing back production of the Equinox, Silverado, and GMC Sierra Denali EVs last month. Following a four-year run, it’s also not planning to promote its EVs during the 2024 Super Bowl.

Meanwhile, rivals, including Hyundai and Volvo, are doubling down as they work to expand their brands.

Hyundai surpassed GM and Ford in EV sales in Q3. Including Kia, Hyundai claimed 7.5% of the market, while GM’s Chevy (5.9%) and Ford (5.5%) fell in the rankings.

Jose Munoz, Hyundai’s global president, told Reuters last week, “Based on what I see, I need more. If I had more capacity today, I could sell more cars.”

Meanwhile, Volvo expects its smallest and cheapest electric SUV, the EX30 (check out our review), to keep momentum rolling next year.

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Home Hardware adds Volvo VNR Electric semi trucks to its fleet

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Home Hardware adds Volvo VNR Electric semi trucks to its fleet

The Canadian home improvement chain picked up a pair of Volvo VNR Electric semi trucks, and it’s putting them to work on last-mile delivery routes in the Greater Toronto Area.

This month, the Canadian home improvement retailer Home Hardware began operating two Volvo electric semi trucks out of its St. Jacobs, Ontario truck depot. The pair of trucks will fulfill last-mile deliveries throughout the area, and mark the company’s first step towards transitioning its entire fleet to zero-emission vehicles.

The Volvo VNR trucks have an operating range of 442 km (about 275 miles). Their delivery routes will take them from Home-brand stores within a 100-150 km (about 90 miles) radius of the St. Jacobs distribution centre.

“We are proud to introduce our new battery-electric trucks to our privately-owned fleet,” said Kevin Macnab, president and chief executive officer, Home Hardware Stores Ltd. “Recognized by the Private Motor Truck Council as Safest Large Fleet, as well as Trucking HR Canada as a Top Fleet Employer and a Fleet of Distinction, Home Hardware Stores, Ltd. is committed to forward-thinking logistics that evolve our supply chain to best support our dealers so they can serve their communities.”

Home Hardware debuted their new Volvo VNR Electric trucks at the company’s 60th anniversary celebration and annual franchise event, the Home Hardware Homecoming, held last week in Toronto, Ontario, Canada.

Electrek’s Take

Volvo VNR Electric at 2024 Home Hardware Homecoming; via Volvo.

Home Hardware is the latest in a growing list of companies – and they’re already adding to the tally of tens of millions of all-electric, zero emission miles driven by Volvo customers. By the time Volvo rolls out its next-generation VNL and FH electric semis next year, it will be the company’s third generation of Class 8 EVs, and it will be backed by more than 100,000,000 miles of real-world data collected by thousands of trucks across dozens of companies.

Is that an insurmountable head start for companies like Tesla to make up? It’s hard to know (and my brain is broken, anyway), but I invite you to check out this episode of Quick Charge recorded a few weeks ago (below) talking about Volvo Truck’s lead, and then share your take on the state of the electric semi truck market in the comments.

Quick Charge

SOURCE | IMAGES: Volvo Trucks.

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Lion Electric delivers the first electric tow truck in North America

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Lion Electric delivers the first electric tow truck in North America

The newest edition to the CAA-Quebec roadside fleet is a fully electric Lion5 flatbed – and the CAA says it’s the first 100% electrique tow truck in service in North America!

Based on the Lion5 medium-duty truck and upfit with a flat bed body developed by XpaK Industries, CAA-Quebec (think AAA, but in Quebec) is marking an important milestone in its 80-history with the deployment of the first electric tow truck in Canada.

“Roadside assistance has always been in CAA-Quebec’s DNA, and it goes without saying that we are taking the lead in electric towing. We have a responsibility to set an example and take a leadership role in protecting the environment,” said Marie-Soleil Tremblay, president and CEO.

As far as the truck itself goes, the Lion5 chassis is packed with 210 kWh of in-house, 800V battery packs. Those are good for a range of up to 310 km (a touch over 190 miles) courtesy of an energy-efficient, high-torque electric motor putting 315 hp that Lion Electric claims can eliminate between 75 and 100 metric tons of greenhouse gas per year compared to a comparable diesel truck.

What’s more, the Lion5-based tow truck promises to reduce CAA-Quebec’s energy (read: fuel) costs by about 80%, and regular maintenance costs by about 60% compared to gas or diesel vehicles in the same class.

“With this new 100% electric, made-in-Quebec tow truck, we are helping to redefine the future of the towing industry,” said Patrick Gervais, VP Trucks and Public Affairs at Lion. “We are proud to be part of a cleaner and more sustainable future with players like CAA-Quebec and XpaK.”

The Lion5 tow truck was delivered in July, and will spend a year being put through its paces in a multitude of towing situations and extreme weather conditions. CAA-Quebec’s roadside assistance service will share its experience with partners throughout Canada and the AAA in the US.

Electrek’s Take

Lion5 electric tow truck; via Lion Electric.

“Electrek’s Take” is where we put our industry experience to use interpreting the news we report. Here, in an article about a “first ever” new commercial segment being entered by a highly visible EV, I probably should be talking about operating costs, “dollars and sense,” and the importance of stabilized costs for a fleet manager’s projections.

Instead, I’m just going to picture some bro-dude’s lifted 4×4 Ram pickup getting hauled out of a parking spot he’s ICE’d and giggle a bit. You try it, too, and let me know if it made you smile in the comments section.

SOURCE | IMAGES: Lion Electric, via TowCanada.

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IVECO announces new electric cargo van, will it come to US as a Nikola?

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IVECO announces new electric cargo van, will it come to US as a Nikola?

Best known in the US as the OEM behind Nikola, Italian truck brand IVECO entered the 2.5 to 3.5 ton medium duty commercial van segment at this week’s IAA Transportation conference with this: the eMoovy electric chassis cab.

Co-developed with Hyundai and riding on a modified platform of the Korean brand’s Staria ST1 van, the IVECO eMoovy is entering a red-hot commercial EV space with a 215 hp electric motor and either a 63 kWh or 76 kWh battery good for up to 199 miles of range.

The IVECO version leverages the Hyundai’s excellent 800V architecture. That means the eMoovy supports ultra-fast 350 kW charging and V2x functionality, so it can be used to back up a job site, supply power to workers, or even power a home (presumably).

A long time coming

IVECO eMoovy gets plugged in; via IVECO.

We’ve known than a commercialized IVECO version of the Hyundai van (which isn’t sold as an EV, that I’m aware of) has been in the works for some time. In fact, Peter Johnson wrote about the 2022 deal way back in February.

In that article, Peter wrote that, while Hyundai would develop and build the chassis, IVECO would customize the electric vans to suit broader commercial markets and distribute the vehicles throughout its network. If that sounds familiar, that’s because (on the surface, at least) the deal seems pretty similar to the one IVECO has with Nikola … which begs the question: will Nikola get an eMoovy variant to sell in the US?

The new electric van will directly target Ford E-Transit customers in Europe, so there’s no reason to believe it won’t be an attractive alternative for commercial fleets on this side of the pond, as well – especially with the “big rig” street cred that could come with the Nikola association.

Electrek’s Take

The commercial EV market is driven by dollars and cents. If EVs have a lower total cost of ownership (TCO) than their gas or diesel counterparts? They’ll continue to sell, and their market share will continue to grow. The only question Hyundai and IVECO need to answer is whether North American truck buyers be more likely to buy a Hyundai-branded van, or a Nikola one.

We asked a similar question to Kia’s James Bell on Quick Charge a few weeks back. Listen to his response to those questions, below, then share your thoughts in the comments section at the bottom of the page.

Kia’s James Bell on Electrek Quick Charge

SOURCE | IMAGES: IVECO, CarScoops.

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