Nord Stream turbine stuck in transit as Moscow drags feet on permits: sources

Russia reopened the pipeline — critical to the EU's natural gas supply — on Thursday after a maintenance shutdown, but the pipeline was still operating at reduced capacity

Reuters
Holger Hansen
Publishing date:Jul 21, 2022 

Last month, Moscow cut the capacity of Nord Stream 1 by 60 per cent, citing the delayed return of the turbine being serviced by German power equipment company Siemens Energy. Russia reopened the pipeline on Thursday after a ten-day scheduled maintenance shutdown, but it was still operating at reduced capacity. 

PHOTO BY JOHN MACDOUGALL/AFP VIA GETTY IMAGES


BERLIN — A missing turbine that Moscow says has caused the Nord Stream 1 pipeline to pump less gas to Europe is stuck in transit in Germany because Russia has so far not given the go-ahead to transport it back, two people familiar with the matter said.

The turbine, which usually operates at the Russian Portovaya compressor station, had been undergoing maintenance in Canada but was flown back to Cologne, Germany, on July 17 by logistics firm Challenge Group, one of the people said.

It is currently unclear when the turbine can be returned, the people said, adding this could still take days or even weeks.

The transport back to Germany happened after weeks of consultations between Berlin and the Canadian government over whether such a move would violate Western sanctions imposed on Russia in the wake of its invasion of Ukraine.

Last month, Moscow cut the capacity of Nord Stream 1 by 60 per cent, citing the delayed return of the turbine being serviced by German power equipment company Siemens Energy.

Russia reopened the pipeline on Thursday after a ten-day scheduled maintenance shutdown, but it was still operating at reduced capacity.

Germany dismisses Russia’s argument that the missing turbine is the reason for lower supplies via Nord Stream 1, and has accused Moscow of using gas flows as a political weapon.

Russia has said that the return of the turbine had a direct impact on the pipeline’s safe operation, adding documentation from Siemens Energy needed to reinstall it was still missing.

One of the sources said Moscow had so far not provided the documents needed to import the turbine into Russia, including details on where exactly to deliver it and via which customs station.

“Under normal circumstances, the maintenance of turbines is a routine operation for us,” Siemens Energy said in a statement. “Naturally, we want to transport the turbine to its place of operation as quickly as possible. However, the time it takes is not exclusively within our control.”



The Kremlin said earlier on Thursday that all difficulties with the supply of Russian natural gas to Europe, including the turbine issue, were caused by Western restrictions, and that Russia remained an indispensable part of European energy security.

German Economy Minister Robert Habeck said of the turbine earlier on Thursday: “Sometimes one has the impression that Russia no longer wants to take it back.

“That means the pretext of technical problems actually has a political background, and that is the opposite of being a guarantor for energy security in Europe.”


MORE ON THIS TOPIC
Russia restarts Nord Stream gas to Europe — but only at 40% capacity level

Habeck said the government was in close contact with Siemens Energy and that it would communicate when the turbine arrives in Russia and has been handed over to Nord Stream’s majority-owner Gazprom.

A spokesperson for Germany’s Economy Ministry declined to comment further. Challenge Group, the logistics company, did not immediately respond to a request for comment. Gazprom, Russia’s natural gas export monopoly, did not reply to repeated requests for comment on Nord Stream 1 and turbines.

© Thomson Reuters 2022

Ukraine's ports to reopen under deal to be signed Friday, Turkey says

Publishing date:Jul 21, 2022 • 

Russia and Ukraine will sign a deal on Friday to reopen Ukraine’s Black Sea ports to grain exports, Turkey said, raising hopes that an international food crisis caused by Russia’s invasion could be eased.

Ukraine and Russia, both among the world’s biggest exporters of food, did not immediately confirm Thursday’s announcement by the office of the Turkish presidency. But in a late night video address Ukrainian President Volodymyr Zelenskiy hinted his country’s Black Sea ports could soon be unblocked.

The blockade by Russia’s Black Sea fleet has reduced supplies to markets around the world and sent grain prices soaring since Russian President Vladimir Putin ordered troops into neighboring Ukraine on Feb. 24.

Full details of the agreement were not immediately released. U.N. Secretary-General Antonio Guterres was going to Turkey, a U.N. spokesperson said. The agreement was due to be signed on Friday at 1330 GMT, Turkish President Tayyip Erdogan’s office said.

Zelenskiy, whose address mainly focused on Ukrainian forces’ potential to make gains on the battlefield, said: “And tomorrow we also expect news for our state from Turkey – regarding the unblocking of our ports.”

SANCTIONS

Moscow has denied responsibility for worsening the food crisis, blaming instead a chilling effect from Western sanctions for slowing its own food and fertilizer exports and Ukraine for mining its Black Sea ports.

U.S. State Department spokesperson Ned Price said Washington would focus on holding Moscow accountable for carrying out the agreement.

The United Nations and Turkey have been working for two months to broker what Guterres called a “package” deal – to resume Ukraine’s Black Sea grain exports and facilitate Russian grain and fertilizer shipments.

Russia on Thursday said the latest round of European Union sanctions would have “devastating consequences” for security and parts of the global economy.

Foreign Ministry spokesperson Maria Zakharova said in a statement that the 27-nation bloc proposed to ease some earlier sanctions in a bid to safeguard global food security, and Moscow hoped this would create conditions for the unhindered export of grain and fertilizers.

BATTLEFIELD

Zelenskiy met senior commanders on Thursday to discuss weapons supplies and intensifying attacks on Russians.

“(We) agreed that our forces have the strong potential to advance on the battlefield and inflict significant new losses on the occupiers,” Zelenskiy said in his video address.

Ukraine has accused Russia of stepping up missile strikes on cities in recent weeks to terrorize its population. Moscow denies attacking civilians and says all its targets are military.

Kyiv hopes that Western weapons, especially longer-range missiles such as U.S. High Mobility Artillery Rocket System (HIMARS) will allow it to counterattack and recapture territory lost in the invasion.

The main frontlines have been largely frozen since Russian forces seized the last two Ukrainian-held cities in eastern Luhansk province in battles in late June and early July. Russian forces are also focused on neighboring Donetsk province.

Russia aims to fully capture all of Donetsk and Luhansk on behalf of its separatist proxies.

It claimed control of the southern port city of Mariupol two months ago after a brutal battle that killed thousands and forced hundreds of thousands to flee.

Those who stayed behind now face a new battle: how to survive without functioning water or sewage supplies in the city where about 90% of buildings were destroyed, and where rubbish and human remains rot in the rubble under the summer heat.

“You start a fire, you cook food, breakfast for the children,” one resident told Reuters. “In the afternoon you go find some work or get your dry ration to feed the children dinner. It’s Groundhog Day, as they say: you wake up and it’s always the same.”

Russia called its invasion a “special military operation” to rid Ukraine of fascists, an assertion the Ukrainian government and its Western allies said was a baseless pretext for an unprovoked war.


(Reporting by Reuters bureaux; writing by Grant McCool; Editing by Cynthia Osterman and Stephen Coates)

Grim tank conspiracy goes viral amid China's $9 billion crisis

Nick Whigham

·News Editor

Wed, 20 July 2022 

China's internet censors are working in overdrive to block vision leaking onto the wider internet of residents protesting in the street as anger in parts of the country over banking malpractice threatens to snowball.

Angry homebuyers in China are threatening to stop paying mortgages on hundreds of unfinished housing projects after construction companies faltered, leaving them with incomplete homes.

In Henan province, in central China, bank depositors say they've been prevented from withdrawing their money for weeks, sparking angry scenes and clashes with police.

"When you buy off the plan – and most people don't know this – in most cases you’re paying up front for the whole property before it's built," says Ben Hillman, Director of the Australian Centre on China in the World at ANU.

"People have bought properties that don’t exist yet.

With property developers faltering, home buyers in parts of China are refusing to pay their mortgage. Source: Getty

"That’s a crisis — it would be for anyone involved — and often entire families have pooled their resources to purchase these properties," he told Yahoo News Australia.

Families who have paid a deposit of about 20 per cent, and making mortgage repayments are staring at the prospect of losing the lot.

"You can see why people are risking life and limb to protest," Associate professor Hillman said.

Loose lending and moral hazard rife in Chinese banking

Ass Prof Hillman believed there was a genuine desire from the Chinese government to fix the banking problems but it would take time to resolve.

"There’s been so much loose lending in China over the years," he said, particularly in the regional banks where these protests were concentrated.

There is a greater degree of moral hazard in the country's banking system because "there’s more of an expectation that you’ll be bailed out if something goes wrong".

While banking malpractice is a "massive social problem" in the country, Ass Prof Hillman said localised protests about property and land deals are not uncommon.

Demonstrators hold banners during a protest over the freezing of deposits by rural-based banks, outside a People's Bank of China building in Zhengzhou, Henan province. Source: Reuters

Authorities are typically happy to let residents blow off steam, however the latest bout of unrest has threatened to calcify into a wider protest.

"Social media changes the dynamic and increases the chances to amplify the protest and for it to spread ... That's something that terrifies the [Chinese Communist] Party," he said.

Bank boycott videos scrubbed from social media

Four banks in Henan province and one in neighbouring Anhui have been frozen since mid-April, the South China Morning Post reported.

About 40 billion yuan (roughly A$9 billion) belonging to depositors around the country is missing, the publication reported in an editorial this week.

With growing concern of systemic risk in the country's banking system, authorities have urged patience while clamping down on online expression.

One video showing fingerprinted notices from homebuyers declaring a boycott on mortgage payments for incomplete developments was blocked on Douyin, the Chinese version of TikTok. The social media platform said "the content didn't pass scrutiny", Reuters reported.

Plain-clothed security personnel pull on a demonstrator's shirt while dragging him away during a protest over the freezing of deposits. Source: Reuters

Other videos that were blocked or deleted from social media sites included scenes of empty construction sites, protesters scuffling with bodyguards, and analyst commentaries on the boycott movement, underscoring the sensitivity of the issue.

On the social media platform Weibo, the hashtag #stopmortgagepayments has been censored, with a notice saying: "Due to related laws and rules, the topic page cannot be displayed."

A number of bank protesters told Reuters they were also unable to upload content of the ongoing protests on WeChat.

Misleading footage of tanks on Chinese streets go viral

Chinese social media companies are subject to strict laws requiring them to censor content that "undermines social stability" or is critical of the central government.

The tight control of information and the frequent scrubbing of posts breeds suspicion and ultimately creates a vacuum for misinformation.

Vision of tanks in Rizhao City in eastern China have gone viral for all the wrong reasons. Source: Twitter

A viral clip showing tanks in Chinese streets has been widely shared with people falsely claiming the tanks have been sent in to quell protests related to the banking turmoil.

A number of accounts with large followings have shared the footage, racking up hundreds of thousands of likes and shares on Twitter, while a Reddit post claiming the tanks were "protecting banks" garnered more than 1350 comments and sparked news articles

However the footage appears to be from a military town in the eastern province of Shandong taken on July 17, and unrelated to the banking protests.

Ass Prof Hillman says the CCP is aware its strict censorship creates a vacuum for counter narratives and misinformation online, particularly outside of China.

"The party is obsessed with control. It will start working on its on narrative and propaganda and allowing visitors once it feels it has everything under control.

"What is interesting is what kind of actors are behind this disinformation," he added, alluding to anti-CCP groups.

Xi Jinping gunning for third term

The protests have erupted at a sensitive time for Beijing. Chinese President Xi Jinping is expected to secure a third leadership term at the 20th Communist Party Congress later this year, and social stability is crucial ahead of the meeting.

In response, regulators and local governments have stepped up efforts to reassure critics that projects will be completed and task forces have been created.

Meanwhile authorities are cracking down on the flow of information. An official at a Chinese developer said his boss had banned staff from commenting on the mortgage protests, even off the record, due to an "order from above".

Analysts at some securities and research firms in China told Reuters they were also advised not to comment on the protests.

with Reuters

Rare 180kg eagle ray jumps into boat

 and gives birth: 'Absolutely scary'

Carly Bass

·News Reporter

Thu, 21 July 2022 

A family got the shock of their lives while on a fishing trip last week after a rare spotted eagle ray suddenly jumped into their boat, before giving birth to four pups.

April Jones was on the water with her son, husband and father-in-law off the coast of Alabama in the US on Friday but they weren't expecting to land a huge 180kg sea animal.

Sharing incredible photos on Facebook, Ms Jones explained they were just about to pack up and move locations when suddenly they felt a thud.

It took "four grown men" to lift the animal - which is approximately 1.5 meters - to safety. Source: Facebook

"I felt something hit me," she told Fox News. "And then I see this big blob flopping around in the back of the boat."

Her husband Jeremy Jones told media he was unaware of what had happened, but he heard his wife screaming before he turned around.

"I hear stuff breaking and flopping, my grandpa falls into me. I look back, this ray is laying in the back of the boat," he told US news site WSPA.

The giant rare 180kg eagle ray lept into the boat before having babies. Source: Facebook

Boat begins to sink due to huge 180kg animal

Due to the sheer size of the animal, they struggled to put her back in the water so they desperately made some calls to find out what to do.

They estimated to eagle ray to weigh up to 180kg (400 pounds) and she was "most likely over 5ft (1.5 meters) when fully flat," Ms Jones wrote on Facebook.

A new problem quickly arose when their boat began to sink under the weight of the animal.

The boat was filling with water so they decided to head back to shore, Ms Jones said.

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In the meantime, they tried to keep the ray alive for the 20-minute trip by splashing water on her consistently.

When they pulled into the closest boat ramp, by luck there was an aquarium and marine research centre – Dauphin Island Sea Lab.

"I ran into the lab to see if anyone could help get her out. In the meantime, some people had come to the boat and helped her get out," she told Fox News.

The female ray gave birth to four pups, but none of them survived. Source: Facebook

Incredible discovery after animal gives birth

Ms Jones said it took "four grown men" to help lift her from the boat, but that's when they made an astonishing discovery.

The mama ray had given birth to four pups right there on the boat, but unfortunately, none of them survived.

It's not known if they were stillborn or if they died during the ordeal.

According to Dauphin Island Sea Lab, rays can suddenly give birth if they encounter a stressful situation.

"It's not uncommon for wild animals to release their young when they feel their life is in danger," curator of the Dauphin Island Sea Lab Brian Jones told Fox.

"We think the reason she was jumping is due to a remora — or suckerfish— being stuck to her belly since it was also in the boat," Ms Jones revealed.

If the ray had landed back in the water the suckerfish would’ve fallen off. But it just so happened to land on Ms Jones inside the boat instead.

April Jones was with her son and husband (pictured) as well as her father-in-law. Source: Facebook

Ms Jones said they were "devastated" that the babies did not survive, but "there was nothing we could have done".

The babies were donated to the Dauphin Island Sea Lab for education purposes.

Woman injured after 'scary' ordeal

The incredible incident left Ms Jones with a shoulder strain and sore collar bone after "half of her body hit half of mine".

She also spent the night in the emergency room for checkups.

"No one knows what they would have truly done unless they were in this situation, we did the best we could to keep the mama alive until we could get help," she said.

Ms Jones said that while it was "beautiful" to see the animal up close, how it unfolded was "absolutely scary"

Vale Indonesia, China's Huayou sign agreement with Ford for nickel plant

 Thursday July 21, 2022 

JAKARTA, July 21 (Reuters) - Nickel miner Vale Indonesia, China's Zhejiang Huayou Cobalt and U.S. car maker Ford Motor signed a non-binding memorandum of cooperation to build a plant in Indonesia to extract nickel chemicals, Vale said in a statement on Thursday. The companies plan to create a partnership to build a plant to produce 120,000 tonnes per annum of mixed hydroxide precipitate, material extracted from nickel ore that would be used in batteries for electric vehicles.

Vale said the new partnership with Ford will be built on its framework agreement with Huayou, signed in April. Under the April agreement, Huayou will develop the project in Southeast Sulawesi and Vale will have rights to acquire up to a 30% stake in the project. ""This three-way relationship is a creative way to secure the nickel Ford needs to help deliver millions of EVs for our customers and it keeps our environmental, social and governance goals front and center in the process,"" Lisa Drake, Ford's vice president of EV industrialization, said in the statement. ""Not only will this partnership with Ford and PT Vale bring to our customers stable and sustainable supply, but also will benefit the increasingly robust EV industry and Indonesian economy,"" Huayou's Executive Vice Chairman, George Q. Fang, said in the statement.

The project is expected to be completed in 2025. Indonesia is keen to utilise its rich nickel reserves to attract investment into metal processing, production of EV batteries material and building EV onshore. The government from 2020 banned export of unprocessed nickel ore to ensure supply for existing and potential investors.

(Reporting by Fransiska Nangoy; Editing by Andrea Ricci)

Ford to buy cheaper CATL EV batteries

to catch Tesla

Joseph White and Ben Klayman

Thu, July 21, 2022 

DETROIT (Reuters) - Ford Motor Co on Thursday said it will import lower-cost lithium iron batteries for its North American electric pickup trucks and SUVs from Chinese battery champion CATL, as it works on a broader alliance with CATL and an array of separate deals to secure battery and battery materials into the next decade.

Ford Vice President Lisa Drake said the automaker plans to secure lithium-iron, or LFP, batteries from a new 40 GWh factory in North America starting in 2026. Drake would not say if that factory would be built by CATL. Reuters reported in May that CATL was looking at U.S. sites to build EV batteries to serve Ford and BMW.

Ford's decision to use lithium-iron batteries in its best-selling North American EVs is the latest sign that lithium iron's lower cost - Ford said the chemistry can cut material costs by 10-15% - is worth the trade-off in range. Tesla is offering LFP batteries in some lower-priced Model 3 sedans sold in the United States. Electric truck and van maker Rivian also has said it intends to use LFP batteries.

Drake said Ford wants to secure more batteries and battery materials from North America, but cautioned: "I wouldn't say that we have 100% confidence that all of these can be localized...It's hard work."

Ford said it also has agreed with CATL to explore using the Chinese company's batteries in Ford vehicles sold in the United States, Europe and China.

CATL said in a statement "the two companies plan to leverage their respective strengths to jointly explore new business opportunities worldwide," involving lithium-iron and other battery technologies.

The CATL agreements are part of a series of deals Ford disclosed to show that it is speeding up efforts to secure battery capacity and raw materials. Among them was an agreement to explore buying lithium from Australian mining giant Rio Tinto, and nickel from Vale SA's units in Canada and Indonesia, China's Huayou Cobalt and BHP. [nL4N2Z231K]

Some of the metals agreements are linked to projects that likely will not be producing until the later part of the decade. The Rio and Compass Minerals deals involve so-called direct lithium extraction technologies that have never worked at commercial scale.

Investors are concerned that supplies of battery materials and battery-making capacity will not keep up with demand for electric vehicles, leaving some automakers short in the later years of this decade.

Ford said it has now sourced about 70% of the battery capacity it needs to support its goal of building more than 2 million EVs worldwide by late 2026.

U.S. government officials are increasingly concerned about the auto industry's reliance on China as the dominant source for battery materials and battery cells.

Ford's decision to use CATL's lithium iron phosphate batteries for the Mustang Mach-E starting next year, and the F-150 Lightning in 2024, marks a significant win for the Chinese battery maker, and a shift in U.S. marketing strategy for Ford.

Lithium-iron batteries typically deliver less driving range than comparable batteries that use nickel and cobalt, and until recently, automakers had stuck with more expensive nickel-cobalt chemistries for the U.S. market, where longer driving range is a key competitive measure.

"We know battery material costs is where the war will be won," Drake said during a call Thursday. "LFP will give the biggest step function down" in costs.

Lower-cost batteries could allow Ford to drop prices for the Lightning and Mach-E, or boost profit margins.

Ford said it is aiming for 8% pretax profit margins on its EVs by 2026. The company has said its EV business currently is not profitable. Even an 8% margin would be short of the 14.6% operating margin Tesla Inc reported Wednesday for the second quarter.

Ford is aiming to expand its annual EV production rate to 600,000 vehicles globally by late 2023, and more than 2 million by the end of 2026. It expects the compound annual growth rate for EVs to top 90% through 2026, more than doubling the forecast industry growth rate.

In March, Ford boosted its planned spending on EVs through 2026 to $50 billion from its prior target of $30 billion, and reorganized its operations into separate units focused on EVs and gasoline-powered vehicles with Ford Model e and Ford Blue, respectively.

The company is also working with LG Energy Solution and its long-time battery partner SK Innovation.

(Reporting by Joseph White and Ben Klayman in Detroit, additional reporting by Ernest Scheyder in Houston; Editing by Bernadette Baum and Andrea Ricci)

UPDATE 1-Activists say Mexico not enforcing environmental laws related to Mayan Train project


Thu, July 21, 2022 
(New throughout, adds details and background)

MEXICO CITY, July 21 (Reuters) - Several environmental groups submitted a claim on Thursday saying "Mexico is failing to effectively enforce its environmental laws to assess the environmental impacts" related to Mexican President Andres Manuel Lopez Obrador's multibillion-dollar Mayan Train project.

Lopez Obrador's flagship project, aimed at attracting tourists to Mexico's Yucatan Peninsula, has been beset by legal challenges.

The groups allege the 1,470-km (910-mile) line is being rushed through without adequate environmental impact studies.

"Inadequate soil and geophysical studies fail to consider the fragility of the Yucatan Peninsula's karst and soil, resulting in elevated risks of infrastructure sinking and fuel transportation accidents," said the statement by the groups. They made the submission under the United States-Mexico-Canada Agreement (USMCA) with the Commission for Environmental Cooperation (CEC).

On Tuesday, Lopez Obrador said the project had been deemed a matter of national security, which could allow development to proceed despite a series of legal injunctions stalling construction.

The CEC has 30 days to review the submission and determine whether it meets the requirements to take action under the USMCA agreement, it said in a statement.

The activist movement "Selvame del Tren," which participated in the submission, held a press conference earlier Thursday to announce a campaign it called "the uncomfortable pillow."

Activists named 15 business executives and politicians, including Lopez Obrador, as those they said should struggle to sleep at night over the environmental destruction caused by the project.

"We have to wake up in Mexico, not only in environmental issues, but in the rule of law, respect for the law of the highest authority," said activist Gemma Santana. 

Greenpeace activists protest at one of the construction sections of the Mayan train due to the environmental impact and the destruction of the jungle caused by the project, in Playa del Carmen, Mexico March 28, 2022. REUTERS/Paola Chiomante

An activist takes pictures of felled trees at one of the construction sections of the Mayan train during a protest due to the environmental impact and the destruction of the jungle caused by the project, in Playa del Carmen, Mexico April 23, 2022. REUTERS/Raquel Cunha

(Reporting by Kylie Madry and Cassandra Garrison, Editing by Anthony Esposito and David Gregorio)

UNJUST TRANSITION BIDEN GREEN JOBS KAPUT
Ford is reportedly planning to cut 8,000 jobs to help fund its EV plans


Engadget

Steve Dent
·Contributing Reporter
Thu, July 21, 2022 

Ford is reportedly planning to cut up to 8,000 jobs over the coming weeks in an effort to fund its plans to build EVs, according to Bloomberg. The layoffs would occur at its Ford Blue unit, recently created to develop vehicles with internal combustion engines (ICE), and would affect other salaried positions in the company. The bulk of cuts are expected to occur in the US.

In March, Ford CEO Jim Farley restructured the company, dividing it into the Ford Blue and Model E divisions, with the latter dedicated to electric cars and pickups like the Mach E and F150 Lightning. As part of that, he announced plans to cut $3 billion in costs by 2026, with the aim of transforming Ford Blue into "the profit and cash engine" for the entire company.

"As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry," Ford's CCO Mark Truby told Bloomberg in a statement, without revealing more details about the cuts. Ford currently employees around 31,000 salaried US workers.

In March, the automaker announced plans to boost electric vehicle spending to $50 billion and plan to build two million EVs by 2026. The company sold just 27,140 EVs stateside last year, but got a significant 76.6 percent boost last month as shipping commenced for the F-150 Lightning.

WHITE, BLUE OR PINK 

NO MATTER THE COLOR OF YOUR COLLAR 

WE ARE ALL PROLETARIANS NOW

• In March, the company created electric vehicle and internal combustion businesses, Model e and Ford Blue, respectively, to compete and win against both new EV competitors and established automakers.

• The major portion of the job cut is likely to happen in the U.S., where the auto major has about 31,000 salaried workers.

• The report noted that Ford CEO, Jim Farley, hinted in February that leaner staff is a key to boosting profits.

• "We have too many people," Farley said at a Wolfe Research auto conference in February. "This management team firmly believes that our ICE and BEV portfolios are under-earning."

Ford will cut thousands of jobs as it eyes transition to electric vehicles



Gino Spocchia
Thu, July 21, 2022 

Ford will cut 8,000 jobs in in the coming weeks in a bid to reduce costs and bolster investment in electric vehicles, a report has said.

The Detroit-based company has not confirmed the cuts, which were first revealed on Wednesday by Bloomberg, and could still change.

According to the report, about 8,000 jobs could be cut from the newly created Ford Blue unit working on the company’s internal combustion engine operations.

Cuts, which could begin before the end of the summer, will also reportedly occur in other areas of the motor business and among salaried employees.

Ford will reportedly use the savings to invest further in electric vehicles, aiming to produce more than 2 million a year by 2026. The company is expected to tell its investors of its plans on Thursday.

TR Red, a spokesperson for Ford, said in a statement to Reuters that the company was committed to “reshaping our work and modernising our organisation”, but would not confirm the cuts.

“We remain focused on reshaping our work and modernising our organization across all automotive business units and across the company,” Mr Reid said. “As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry”.

Ford’s chief executive officer Jim Farley said earlier this year the company needed to find $50bn in profits from the sale of diesel engine vehicles – and via the innovation of the Ford Blue unit – to fund further investment in electric vehicles, of which only 27,140 were sold by Ford in the US last year.

In July, Ford reported selling 76.6 per cent more electric vehicles than a year ago with 4,353 units sold in June alone, according motor news site CBT News.

So far this year, electric vehicle sales in the US have been twice the amount of last year, but as The New York Times reported last week, the figure is still only around five per cent of the overall sales market.

Additional reporting by Reuters

NO NEED TO CUT JOBS WHEN FORD CAN AFFORD NOT TO GIVE AWAY DIVIDENDS AND SHARE BUY BACKS (USED TO PUMP UP CEO SHARE PRICES)

https://ycharts.com/companies/F/stock_buyback

Ford Motor Stock Buybacks (Quarterly) - YCharts 

Stock buybacks are when companies buy back their own stock, removing it from the marketplace. Stock buybacks increase the value of the remaining shares ...

https://www.barrons.com/articles/ford-gm-stock-dividends-51655389524

Ford and GM Diverge on Dividend Policies. Here's Why and What It ... 

Jun 17, 2022 ... Ford reinstated its dividend last fall after suspending it more than two years ago when ... Neither company has been buying back much stock.

https://www.barrons.com/articles/ford-rivian-stock-price-stake-sale-51652256380

Ford Sells 8 Million Rivian Shares. It Still Holds 94M ... - Barron's 

May 11, 2022 ... Ford sold 8 million shares of Rivian worth about $214 million on Monday. That leaves the auto maker with about 94 million shares of the ...

https://seekingalpha.com/article/4503372-is-ford-wasting-money-on-dividends-heres-the-verdict

Is Ford Wasting Money On Dividends? Here's The Verdict (NYSE:F) 

Apr 25, 2022 ... Ford, famously, focuses on dividends and not buybacks. The company did not allocate funds for share repurchases in 2020 and 2021. Ford spent ...

https://www.bloomberg.com/news/articles/2021-12-08/bill-ford-acquires-2-million-shares-with-stock-near-20-year-high

Bill Ford Acquires 2 Million Shares of Automaker With Stock Near 20 ... 

Dec 8, 2021 ... Ford Motor Co. Chair Bill Ford acquired almost 2 million shares of his company for about $20.5 million through the exercise of stock options ...

https://www.marketwatch.com/story/ford-stock-rallies-after-move-to-buyback-up-to-5-billion-of-higher-yield-debt-2021-11-04

Ford stock rallies after move to buyback up to $5 billion of higher ... 

Nov 4, 2021 ... Shares of Ford Motor Co. F, +1.11% rallied 1.9% in premarket trading Thursday, after the auto maker said it launched a tender offer to ...

https://www.cnbc.com/2021/11/04/ford-to-repurchase-up-to-5-billion-in-junk-bonds-as-it-restructures-its-balance-sheet.html

Ford to repurchase up to $5 billion in junk bonds as it restructures its ... 

Nov 4, 2021 ... Ford is buying back much of the $8 billion in bonds the company issued at the start the coronavirus pandemic at lofty yields of between 8.5% and ...

https://www.marketwatch.com/story/ford-stock-rallies-after-move-to-buyback-up-to-5-billion-of-higher-yield-debt-2021-11-04

Ford stock rallies after move to buyback up to $5 billion of higher ... 

Nov 4, 2021 ... Shares of Ford Motor Co. F, +1.11% rallied 1.9% in premarket trading Thursday, after the auto maker said it launched a tender offer to ...

https://money.cnn.com/2000/09/14/companies/ford_buyback

Ford approves $5 billion share repurchase, surprising analysts 

Sep 14, 2000 ... Ford Motor Co. said Thursday it is buying back up to $5 billion of company stock, settling fears by some analysts and investors that its ...

Ford reportedly preparing to slash 8,000

 jobs to help fund EV transition

Jamie L. LaReau, Detroit Free Press

Thu, July 21, 2022 

Ford Motor Co. is getting ready to eliminate up to 8,000 jobs in the coming weeks to help fund its push into electric vehicles, according to a news report.

Bloomberg, citing unnamed sources familiar with the plan, said Wednesday the cuts will come largely in the newly created Ford Blue unit that produces gasoline-powered vehicles, as well as "other salaried operations throughout the company." The plan has reportedly not yet been finalized, so details may change.

The news comes on the heels of Michigan giving the automaker a $100 million tax-funded incentive package in June as part of a plan to create new jobs in the state. The Bloomberg report does not mention how many jobs might be cut in Michigan.

Ford spokesman Mark Truby told the Detroit Free Press that he could not confirm the Bloomberg report.

Ford CEO Jim Farley set a plan to build 2 million electric vehicles a year by 2026.

Ford CEO Jim Farley has said he plans to slash $3 billion in costs by 2026 and that he wants to turn Ford Blue into “the profit and cash engine for the entire enterprise.” In March, Farley restructured the automaker to create two businesses: the “Model e” unit to develop EVs and “Ford Blue” to focus on internal combustion engine vehicles such as the popular F-150 pickup, the Mustang and the Bronco SUV.

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Bloomberg reported that the job cuts are expected to hit a variety of operational functions among Ford’s white-collar workforce and they may come in phases, but are likely to begin this summer. The majority of the cuts are expected to be in the U.S. where Ford employs about 31,000 salaried workers.

Ford declined to comment on "speculation" about its business. Spokesman T.R. Reid said in an email to the Free Press, "As we’ve said lots of times, to deliver our Ford+ transformation and lead an exciting and disruptive new era of electric and connected vehicles, we’re reshaping our work and modernizing our organization across all of the automotive business units and the entire company. We’ve laid out clear targets for our cost structure so that we’re lean and fully competitive with the best in the industry."

In March, Farley boosted Ford's spending on EVs to $50 billion, up from $30 billion through 2026. He set a plan to build 2 million EVs a year by 2026. Last year, Ford sold 27,140 EVs.

Ford's crosstown rival, General Motors, is investing $35 billion in EV and self-driving car technology by mid decade with the goal to sell one million EVs in the U.S. by that time.

Farley has said workforce reduction is a key to boosting profits, which have eroded on its Mustang Mach-E and other plug-in models because of the automaker's increased costs for commodities and warranties.

“We have too many people,” Farley said at a Wolfe Research auto conference in February. “This management team firmly believes that our ICE and BEV portfolios are under-earning.”

More: Michigan Assembly Plant manager who oversees Bronco, Ranger no longer with Ford

This article originally appeared on Detroit Free Press: Ford reportedly preparing to slash 8,000 jobs to help EV transition