Automotive News Canada - April 2024 - 11

* APRIL 2024
11
The shock in Ford's EV delay
FORD MOTOR CO. PROVIDED A JOLT OF
reality April 4 for anyone harbouring the
misconception that the electric-vehicle
transition will go off without a hitch.
The company's two-year delay in EV
production that pushes the launch of its
electric three-row crossovers from 2025
to 2027 will more than triple the time
about 3,000 Ford workers spend on layoff.
The
pause calls
into question
repeated
technology
readiness and
consumer
assertions about
demand for EVs.
The lengthy pause calls into question
repeated assertions made by the federal
government and EV
advocacy groups
about technology
readiness and consumer
demand for
EVs. Ford cited challenges
with both as
among the reasons
for the delay.
But for industry
insiders, the
announcement was
hardly a bolt from
the blue.
" The EV transition has not been as
straightforward as people would think initially, "
Unifor President Lana Payne told
Automotive News Canada after Ford's
announcement.
She speaks from experience.
Unifor members at General Motors'
CAMI Assembly Plant have already seen
firsthand just how choppy the shift away
from internal-combustion-engine vehicles
has been. The plant in Ingersoll, Ont., is
for Oakville, Ford will boost output of
hybrid vehicles.
DAVID
KENNEDY
TORONTO
BUREAU
CHIEF
the " perfect example " of all the challenges
the auto sector is facing, Payne said.
CAMI stopped producing the gasoline-powered
Chevrolet Equinox crossover
in April 2022. The plant was then rapidly
retooled to start building its first electric
BrightDrop delivery van by December of
the same year.
That's when the well-laid plans fell
largely by the wayside.
Completed vans trickled out of CAMI
through much of 2023. But over nine
months of production, the plant never
ramped up beyond a single shift and fell
well short of anticipated volumes. In
October, GM idled CAMI, citing a shortage
of battery packs.
The plant only reopened April 2. For
now, production is still running on a single
shift, with output remaining well short
of expectations at launch despite a large
BrightDrop order book.
Ford's move to push out the launch of
its large electric SUVs might be to head
off some of these midproduction growing
pains that can be chalked up to an
immature battery supply chain. As it
bides its time on electric versions of the
Ford Explorer and Lincoln Aviator booked
The move by an automaker that has
enthusiastically embraced the EV shift
shows the transition will take time.
" Anybody who is carrying on a profitable
business making millions of cars,
having to switch their complete drive
technology over is not
going to be successful
in every single program, "
Flavio Volpe,
president of the
Automotive Parts
Manufacturers'
Association, said.
It has been clear to
suppliers since the first
bids went out, he said,
that EV production in
Oakville in 2025 would
rely on sufficient critical-mineral
supplies,
battery technology and
a range of other factors.
Given everything that
needed to come together, a delay doesn't
come as a shock, Volpe said.
It also doesn't mean that the march
toward electrification is dead in the water,
he said, but that " all of us have to be a
little bit more patient. "
Payne: " The
EV transition
has not been
as straightforward
as
people
would think
initially. "
FILE PHOTO
Delays of this magnitude aren't likely
to " become the norm, " but " we shouldn't
be surprised " that the EV transition will
involve some bumps along the way.
- ANC
Carlisle awaits May 2
AutoCanada elections
CONTINUED FROM PAGE 3
career with the automaker.
Prior to heading
the company's North
American operations,
he served as
president of the
Cadillac brand
and president
of GM Canada,
among a range
of other senior
leadership roles.
AutoCanada
is the only publicly
traded dealership
group in
the country.
" Steve brings
extensive and
unparalleled
OEM experience
and strategic
acumen, offering
invaluable
private equity firm
Imperial Capital and a
chartered accountant,
has also been nominated
to join the board.
The two will stand
for election at
AutoCanada's
annual shareholder
meeting
May 2.
Dennis
DesRosiers
will leave his
seat on the
AutoCanada
board. He has
served since
2007.
FILE PHOTO
guidance during a period
of industry transformation,
while bringing
the perspective of our
most important business
partners to the boardroom, "
Paul Antony,
AutoCanada's executive
chair, said in a release.
Christopher Harris,
a partner at Toronto
24_001490_Automotive_News_Canada_APR_CN Mod: March 7, 2024 1:34 PM Print: 03/14/24 page 1 v2.5
To clear the
way for the
two new board
members, Lee
Matheson and
long-serving
independent
director Dennis
DesRosiers plan
to leave their
seats. The industry
consultant
and founder
of DesRosiers
Automotive
Consultants has served
on AutoCanada's board
since 2007. He retired
from most of his automotive
work in 2021
after a 52-year career.
AutoCanada's five
other board members,
including Antony, have
been nominated for
reelection. - ANC
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Automotive News Canada - April 2024

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