Ford boss Jim Farley claims EV production will require 40 percent fewer workers. | So Good News
Ford CEO Jim Farley last week warned of “storm clouds” for auto workers, saying that the eventual shift to electric vehicles will require fewer workers, 40 percent fewer.
Ford needs to make more parts in-house to minimize job losses, Farley said.
from Financial Times (Required Subsidiary): “It costs 40 percent less to make an electric car. . . We have to capitalize on everyone having a role to play in this growth,” Farley said at a conference in Detroit focused on improving racial diversity in the auto industry. “We have batteries, Motors and electronics have a new supply chain to deploy, and diversity has to play a bigger role in that,” Farley told civil rights activist Jesse Jackson of the Rainbow Push Coalition, which sponsored the conference.
Ford aims for EVs to account for 50 percent of its global sales by 2030.
EVs are widely expected to require fewer parts and less labor to produce them. In 2018, the United Auto Workers Union, which represents about 400,000 workers, predicts about 35,000 job losses.
A report from Germany suggests the country could lose 400,000 jobs over the next decade as it shifts to EV production.
Farley said earlier this year that the company’s workforce was a little too bloated. Three thousand full-time and contract workers were cut in August. Ford employs 183,000 people by the end of 2021.
Ford, like other OEMs, is partnering with suppliers for battery production. Farley pointed out that the company is undergoing a shift not seen in six decades.
“If Henry Ford was brought back to life, 60 years ago, it wouldn’t have been exciting, but now we’re completely reinventing the company,” Farley said. Financial Times.
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