Wall Street Times

Ford EV productions halted after fire issue

Ford There are several large American businesses that export their products and services to numerous foreign markets.

Before Elon Musk and Tesla, gas-powered automobiles were the only means of transportation on concrete roadways.

One of the leading American automakers, Ford Motor Company has been around for more than a century.

Despite the economic slump, the company has thrived and frequently introduces new items to the market.

Ford adjusted its business strategy in response to the growing demand for electric vehicles and unveiled plans for a number of new models.

One of the most anticipated cars is the Ford F-150 Lightning pickup truck.

Regrettably, a recent issue has forced the firm to temporarily halt production.

The news

Ford Motor Company said in a statement on Wednesday that it doesn’t expect to stop making the F-150 Lightning pickup vehicle until the end of the next week.

After that, the company will address a potential battery issue caused by a car battery fire.

The fire was eventually confirmed one day after the business said at the beginning of last week that the much awaited automobile would be delayed.

Ford claimed that the firefighters’ lineage had been found on Wednesday.

By the end of the next week, the research must be completed.

The company will next change how the truck’s batteries are made, which might take a few weeks.

The fire

The Detroit Free Press first reported on the battery fire.

The incident reportedly took place during a holding lot quality check prior to delivery.

The fire subsequently spread to the next-door automobile.

Ford admitted it, but a company representative chose not to elaborate.

The fire forced the factory to cease production and stop transporting finished vehicles.

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The batteries were provided by SK On, an SK Innovation subsidiary in South Korea.

Ford and SK On established a joint venture last year to construct battery manufacturing facilities in the US.

No cars that had previously been shipped to customers and dealers, according to the company, experienced battery issues.

Moreover, Ford dealers are allowed to keep selling the automobiles they currently have in stock.

Sales pressure

Investors are keeping a close eye on the Ford F-150 Lightning truck.

The fact that the pickup truck (an electric variant) was the first of its kind to enter the market is a crucial aspect of the observation.

Also, it is recognized as a historic Ford launch.

Nonetheless, the battery issue exacerbates Ford’s ongoing “execution difficulties”.

CEO Jim Farley initially brought up these concerns at the beginning of February, and he believes they had a negative impact on the company’s fourth-quarter profitability.

On Wednesday, Farley emphasized the need for the company to improve operational efficiency in order to match margins with competitors and produce more revenue.

According to the CEO, Ford’s poorer profitability when compared to its well-known rivals is the consequence of a $7 billion to $8 billion cost disadvantage.

During a Wolfe Research Conference, Jim Farley presented a strong argument for action by saying:

“We can cut the cost, we can cut people, we can do that really quickly and we’ll do whatever we need to.”

“The reality is that if you don’t change the efficiency of engineering, supply chain and manufacturing, the basic work statement, the way people work, the efficiency of that it’ll grow back.”

“This is really about redesigning what we do in the 120-year-old part of the company.”

Similar problems

Automakers typically manage recalls and vehicle issues.

But, considering the enormous sums of money automakers invest in building automobiles, battery problems are exceptional.

General Motors’ electric Chevrolet Bolt has a very big problem that has just arisen.

In 2021, GM was forced to recall the Bolt EV because of fire issues.

Due to production flaws that led to 13 bolts spontaneously igniting, the company recalled every electric vehicle it shipped in 2016.

Image source: Financial Times