Ford funnels funding into electric vehicles with 8,000 combustion engine job cuts
Ford will cut up to 8,000 jobs over the next few weeks, and the job cuts are expected to be in combustion engine manufacturing. Ford has made a major effort to electrify its lineup with a full commitment to electric vehicles. Eliminating ICE jobs would surely help boost profits, as it would channel available capital into power projects.
Bloomberg, citing “people familiar with the matter,” said Ford would cut jobs from its “Ford Blue” division in the coming weeks. Ford split its ICE and EV projects into separate internal divisions earlier this year, with the ICE projects falling under the Ford Blue moniker. Electric vehicle projects are aligned with the “Model e” unit within the Detroit-based legacy automaker.
The division of the two powertrains within Ford’s production lines aims to help generate a new consumer experience for electric vehicle drivers. Model e is responsible for creating a “new buying, buying and owning experience” for future customers using simple and intuitive e-commerce platforms. This includes the potential removal of the dealership model, which could result in fixed, non-negotiable prices for electric vehicles. Tesla has adopted this strategy, which does not use the traditional dealership platform. Customers generally don’t like going to car dealerships and trying to negotiate with a salesperson. This model has helped alleviate dealer anxiety.
Teslarati spoke with Ford press representatives regarding Bloomberg’s report, and they were unwilling to comment “in any way”. However, given recent circumstances with other automakers, it wouldn’t be odd to suggest that Ford might be making cuts.
Tesla and Rivian are just two automakers across the automotive industry that have announced they will be downsizing, but both companies say they grew too quickly in some areas. Across the tech sector, Apple has also said it will freeze hiring, joining Microsoft and Google as companies that will temporarily suspend onboarding in certain areas.
Ford CEO Jim Farley has said in the past that cutting some positions would be a good way to boost profits. Farley has largely spearheaded the company’s electrification efforts, spearheading the development and expansion of several new all-electric models to be released in various regions over the next decade. The elimination of employees from an ICE unit that is only a few years old could begin as Ford prepares to increase its new sales of electric models to 40-50% by 2030.
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