#FactoryNews

On Tuesday, Lordstown Motors Corp. (LMC) officially filed for bankruptcy and sued Foxconn. Though the writing was already on the wall for the Ohio-based electric vehicle manufacturer. Lordstown’s share price collapsed in 2021 and the company has suffered numerous production delays. This seems to have encouraged the Hon Hai Technology Group/Foxconn to back out of its strategic partnership.

But it’s not bad news for everybody. Former chief executive of Lordstown Motors, Steve Burns, managed to sell off every share of his stock before the company filed for Chapter 11. You might remember him as the executive who abruptly quit the company without explanation shortly after LMC's stock valuation slammed into the pavement.

While Toyota Motor Corp is known for casting a wide net and acting cautiously, it recently made some fairly lofty statements about its strategy regarding all-electric vehicles. Despite the brand offering the humble bZ4X as its singular EV on the North American market, Toyota is suggesting subsequent models driving ranges that model would envy. 

On Monday, Ford Motor Co. opened the Cologne Electric Vehicle Center in Germany. Founded in 1930, the facility first produced examples of the Model A intended for the European market. Though the site is probably more famous for manufacturing the Ford Capri and every single generation of the humble Fiesta.

The factory has more recently been the recipient of a $2 billion investment to prepare it for the automaker’s push into electrification. With retooling having concluded, Ford says the plant should boast an annual production capacity of 250,000 electric vehicles.

On Wednesday, Toyota Motor Corp. confirmed that its first U.S.-made all-electric vehicle will be assembled in Kentucky starting in 2025. The Georgetown facility is the automaker’s largest in the world and will be incorporating a three-row EV into its production lines once Toyota’s battery plant in North Carolina is completed.

A little over a week ago, a few hundred workers went on strike at the Clarios battery plant in Holland, Ohio, over failed labor negotiations. While picketing is standard practice for UAW members dissatisfied with their contracts, the Lucas County Court of Common Pleas issued the restraining order on Friday to prevent striking workers from disrupting business operations and creating an allegedly unsafe environment.

Polestar is reportedly taking over Saab's defunct plant in Sweden to expand upon its European research and development operations. The 15,000-square-meter building, located in Trollhattan, is said to be focusing on the brand’s powertrain development.

The Ohio-based Lordstown Motors has reportedly resumed assembly and delivery of its all-electric Endurance pickup this month, after having to pause production in February to address quality concerns.

Following news that Volkswagen was far more enthusiastic about establishing battery plants in North America than in Europe, we have confirmation on the location of the automaker’s next cell manufacturing facility. It will be located in St. Thomas, Ontario. Despite scattered assumptions that VW’s recent praise of the Biden administration’s EV incentive scheme would signal another factory based in the United States, setting up shop in Ontario should still satisfy regional supply chain needs to manufacture electric cars under the provisions outlined in the USMCA.

Volkswagen is reportedly pausing plans to build a battery plant in Eastern Europe so it can prioritize construction in the United States. Though the situation could be more accurately described as VW notifying EU officials that the U.S. is offering an estimated €10 billion in US incentives as part of the Biden administration’s Inflation Reduction Act (IRA).

It’s not the first time something like this has happened. Volkswagen similarly delayed decisions on where to build a battery plant in December of 2022, telling EU leadership that the Czech Republic, Hungary, Poland, and Slovakia all looked good – but that it wanted to consider its options. This time around, it’s being a little clearer by stating that the U.S. is offering sweeter subsidies and tax incentives than what’s available to Europe.

With production pauses becoming commonplace during the pandemic, automakers realized they could effectively starve the market while demand reached dizzying highs that allowed the industry to trim overhead and forego factory incentives. Unfortunately, this also meant consumers were given less choice and often had to pay more – whether or not they found what they wanted on dealer lots.

Many automakers have stated that they won’t be going back to robust vehicle inventories and would instead continue attempting to run lean in order to maximize profitability. With exactly that in mind, General Motors has opted to suspend production at its Fort Wayne, Indiana truck assembly facility. The pause will last two weeks (impacting the Chevrolet Silverado and GMC Sierra) and help the company “maintain optimal inventory levels.”

On Tuesday, Mexican President Andres Manuel Lopez Obrador announced that Tesla will be building a plant south of the border. Confirmation comes following a call with CEO Elon Musk – held on Monday – with promises that the American company would be issuing a series of commitments designed to address regional water scarcity. The alleged plant is said to be located in Monterrey, which has historically struggled to cope with drought. 

Bentley has confirmed plans to stop production of the iconic W12 engine at its factory in Crewe, England, next year. Volkswagen Group, which owns Bentley, has been adamant about its transition toward electrified models and the industry trend has been to do the same with high-end luxury vehicles. The assumption here is that novel technologies will bring in high rollers and that battery tech will maximize profitability by reducing labor costs and making it easier for the big brands to comply with governmental regulations.

Ford is reportedly preparing to lay off a minimum of 1,000 German employees as it prepares to manufacture two battery-electric models developed under Volkswagen’s MEB platform. The partnership is old news, as is Ford wanting to pivot toward all-electric vehicles. However, everyone seems surprised that the decision would be accompanied by job cuts – despite countless reports having predicted that the global push toward EVs would mean far-fewer automotive jobs in the years to come.

Stellantis hasn't officially confirmed that the current-generation Jeep Cherokee will soon be discontinued, but it sure looks that way, and 2023 is looking like its final model year. But the successor cannot be far away, considering just how few options are left within the Cherokee lineup. For 2023, trims have been limited to Altitude Lux and Trailhawk – with engine options being limited to the 180-hp 2.4-liter inline-four and 270-hp turbocharged 2.0-liter inline-four.

With the United States having successfully passed the Inflation Reduction Act over the summer, the financial floodgates have been opened for battery suppliers. Despite often being framed as a massive infrastructure package that would also help tamp down U.S. inflation, the bill also included numerous items from the Biden administration’s climate agenda setting aside billions for industries vowing to go green. This includes the joint venture between General Motors and LG Energy Solution – which will receive $2.5 billion in loans to build three new lithium-ion battery factories.