Ford Motor Co F could see delays in Mustang Mach-E deliveries in China just days after handing over the first orders of the locally made electric crossovers to customers, cnEVpost reported on Thursday.
What Happened: A key battery supplier for the Mach-Es based in Xian has temporarily halted production due to a COVID-19 outbreak at the company’s facility.
Six field engineers for the Mustang Mach-E program have been quarantined in the city, according to the report, which added that the production for the electric crossover would be hit to an extent as well.
Ford aims to resume production as soon as the epidemic has eased and speed up delivery to minimize the impact, cnEVpost noted.
Why It Matters: The development comes just four days after Ford delivered the first set of locally-built Mustang Mach-E electric vehicles to customers in China, where it aims to compete with local rival Nio Inc NIO and global market leader Tesla Inc TSLA.
The Dearborn, Michigan-based Ford began making the Mach-Es from its Changan manufacturing plant in Chongqing in October. For the U.S. and the European market, Mustang Mach-E vehicles are currently built at a plant in Mexico.
Mustang Mach-E is Ford’s first all-electric crossover named after the iconic Mustang and holds the key to its success in China until it launches more electric vehicle models.
The legacy automaker is expected to begin commercial production of F-150 Lightning — the electric version of its best-selling truck next year in the U.S. and is also spending $30 billion by 2025 under a turnaround plan toward electrification.
Ford expects 40% to 50% of its global vehicle volume to be fully electric by 2030.
Price Action: Ford shares closed 0.96% higher at $20.56 a share on Wednesday.
Photo: Courtesy of Ford
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