Ford CEO considers US battery production launch critical

Ford Motor finds itself in a delicate situation with traction batteries’ supply regardless of the crisis in the semiconductor industry. The dispute between the South Korean companies SK Innovation and LG Energy Solution led to the fact that the first of them was banned for ten years from importing batteries into the United States and producing in the country, which violates the intellectual property rights of the second company. It was only because of Ford’s need for traction batteries that the US authorities made an exception to allow SK Innovation to supply this customer with its batteries for four years. The leadership of Ford Motor calls on the South Korean partners to conclude an amicable agreement, but so far, the parties have enough disagreements on its terms.

Bloomberg. At one of the industry events, he also said that the American auto industry could not allow a repeat of the situation with the shortage of components that arose due to the concentration of their production in Taiwan. For this, it is necessary to stimulate large-scale production of traction batteries in the United States, as added by Jim Farley. The auto giant is already in talks with the government on this topic.

The head of Ford also stressed the importance of reducing warranty costs – the company aims to achieve annual savings of $ 1 billion to $ 2 billion in this area. Monetizing information services will also be an important source of Ford revenue under the new CEO. Already, this market is capable of generating $ 4 billion annually. Money can be received from the sale of services to customers and from cooperation with other companies interested in obtaining information about Ford customers. This segment is in its infancy; it will become significantly larger, according to the company’s head.