Ford’s Massive Layoffs As It Moves to EVs and Hybrids

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Donald Trump was right again. Auto workers will lose their jobs to electric vehicles that Democrats are forcing on Americans. It’s allegedly for the climate crisis that is always ten years away and has been since 1963.

The demand for EVs is falling so Ford is slowing EV production slightly and ramping up hybrids as an interim measure. Americans don’t want EVs, but if Biden gets back in, he will ramp up gas prices with regulations on fossil fuels to make EVs more attractive.

The falling demand for electric vehicles (EVs) weighs on automotive companies. Ford and other major carmakers, which have been switching focus to EVs these last few years, are among those affected.

This resulted in Ford rival General Motors (NYSE:GM) recently cutting its EV forecast for 2024. It now expects to produce 200,000 to 250,000 EVs this year. Prior to that, the estimate ranged from 200,000 to 300,000 EVs, reports Investor’s Place.

Layoffs in Detroit

Ford Motor Company officially announced Wednesday that 1,400 workers at its flagship Rouge manufacturing complex in Dearborn, Michigan, 40 miles west of Detroit, would be cut, effective immediately.

The press release stated that half of the workers would eventually be reassigned to the Michigan Avenue Assembly Plant in Wayne, Michigan. Another 700 will be pushed into early retirement. There is speculation that those 700 employees will be on layoff for at least two months before starting in the Wayne plant.

A supporter of the Ford Rouge Rank-and-File Committee reported to the World Socialist Web Site that many workers at the MAP facility complained of short work weeks and even doubted the shop could absorb another 700 workers.

Layoffs in Germany

Bild reported on Thursday that US car manufacturer Ford has imposed significant management cuts at its German plant in Cologne, part of a restructuring plan that could see the auto giant leave the country.

F-150 EV production

According to the newspaper, concerns in Ford’s German unit are mounting. The company announced that only four of the ten current managing directors will retain their positions.

“As part of the transformation of the European business, Ford is simplifying its administrative and management structure in Germany and downsizing the management of Ford-Werke GmbH,” the carmaker was cited as saying in a statement. “With effect from July 1, 2024, a maximum of four members will form the management”

Supervisory Board Chairman Kieran Cahill argued that the drastic step is needed to simplify Ford’s management structure. The move “gives us more speed of action and allows the management team to concentrate fully on its operational tasks and lead Ford into a successful future,” Bild quoted him as saying.

Ford announced massive layoffs last year as part of an austerity plan. It will cut 3,800 jobs in Europe, mostly in Germany. It is shifting to electric vehicle (EV) production, which requires less personnel.

The carmaker has already halfway completed its previous restructuring plan of 2,300 job cuts in Germany. They reduces staff numbers to 13,000, the head of the works council at the Cologne plant, Benjamin Gruschka, told Reuters.

Last week, Ford announced plans for further job cuts in Germany without specifying the number of additional layoffs.

Layoffs in Spain

Ford job cuts will take place in Spain and will result in 1,600 employees losing their jobs. Of these, 600 are permanent reductions, while the other 1,000 may be rehired at a later date.

Ford plans to start producing a new hybrid passenger car at the factory in 2027. The company says it may reach temporary agreements with the union representing employees to keep the 1,000 jobs until then.

Investors will note that these layoffs build on others at this factory in Spain. Just last year, Ford cut 1,100 jobs. There are currently 4,700 people employed at the facility, Reuters notes.

 


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