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Ford CEO Flags Need For More In-House Work Roles As Automaker Transitions Focus On EVs

Benzinga · 11/16/2022 07:46
  • In a conference in Detroit, Ford Motor Company (NYSE:F) Chief Executive Jim Farley said the company would need 40% fewer workers to make electric vehicles than building cars and trucks powered by petrol.
  • "It takes 40 percent less labor to make an electric car, so . . . we have to insource so that everyone has a role in this growth," Farley said. 
  • "We have a whole new supply chain to roll out in batteries and motors and electronics, and diversity has to play an even greater role in that," Farley said.
  • Financial Times reported that the United Auto Workers union estimated in 2018 that the transition to EVs could cost 35,000 jobs out of the 400,000 workers it represents.
  • Jim Farley warned of "storm clouds" in the next phase of switching to EVs as Ford pursues aggressive sales goals.
  • In August, Ford announced its plans to slash about 3,000 salaried and contract jobs to concentrate on the electric vehicle business.
  • He noted that Tesla Inc (NASDAQ:TSLA), the leading U.S. electric vehicle maker, builds much of the hardware for its electric vehicles, including batteries. Tesla's profit margins are now superior to Ford's.
  • "We want to be No. 1," Farley said at the conference in Detroit.
  • Price Action: F shares are down 0.70% at $14.20 during the premarket session on the last check Wednesday.