Ford Boss Jim Farley Claims That EV Manufacturing Will Require 40 Percent Less Labor
Ford CEO Jim Farley warned last week of "storm clouds" for auto workers as the eventual transition to electric vehicles will require fewer workers -- 40 percent fewer, according to Farley.
Farley also said Ford needs to make more parts in-house, presumably to help reduce job losses.
From the Financial Times (sub required): “It takes 40 per cent less labour to make an electric car, so . . . we have to insource, so that everyone has a role in this growth,” Farley said at a conference in Detroit focused on improving racial diversity in the auto industry. “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 told civil rights activist Jesse Jackson, whose Rainbow Push Coalition sponsored the conference.
Ford is aiming to have 50 percent of its global sales be EVs by 2030.
It's widely expected that the production of EVs will require fewer workers because EVs require fewer parts. In 2018, the United Auto Workers union estimated that it will lose 35,000 jobs -- the union represents about 400,000 workers.
A report out of Germany suggests that the country could lose 400,000 jobs over the next decade during a shift to EV production.
Farley also said earlier this year that the company's workforce is a bit too bloated. Three thousand full-time and contract employees were cut in August. Ford employed 183,000 people at 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 it hasn't seen in six decades.
“If Henry Ford came back to life he would have thought the last 60 years weren’t that exciting, but he would love it right now because we’re totally reinventing the company,” Farley said, according to the Financial Times.
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- SilverCoupe Do the real cars self-dent when hit by the virtual ones?
- SCE to AUX From the SAE: https://www.sae.org/blog/sae-j3016-updateFor Level 3: "When the feature requests, you must drive."The timing of that request will be the subject of lawsuits. Too little warning, and this is just a Level 2 system wearing nicer clothes.Pretty car, though.
- Analoggrotto So, who has the digital Tourettes?
- Analoggrotto Mercedes can try but will NEVER match the superlative engineering of TESLA. The #1 Choice for the #1 members of society. The lower class can stay on earth and drive Mercedes.
- Dukeisduke The "fix" is not a fix - it just assures that when the o-ring breaks down and leaks brake fluid onto the board, the fuse will blow and the car won't burn to the ground. The HECU ("Hydraulic Unit Assembly" in H/K parlance) will still be dead, and you'll have no ABS or ESC. So the car won't burn to the ground, but you'll be looking at an expensive repair. I priced the HECU (Kia p/n 58920-1M640) for the 2012 Forte Koup - the MSRP is $2,325.79, and I can get one from the online seller I buy from for $1646.65. It's not much labor to replace, but then you have to bleed the brakes, or preferably flush the system, since the car's 11 years old and could use a flush. Folks relying on a dealer will be out $3k or more for repairs.I went to the NHTSA site and filed a defect report (the only way I could find to comment on the recall) to tell them that they should force H/K to replace the HECUs on all the affected vehicles, instead of allowing them to just do the minimum.