Ford CEO: "40% Fewer Employees Needed for Electric Vehicle Production"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Jim Farley, CEO of American automaker Ford Motor Company, stated that the company is facing a situation where it must reduce its workforce by 40% due to the transition to electric vehicles (EVs), and to address this, it plans to expand the production of parts that can be manufactured in-house.

According to CNBC and other outlets, Farley attended a conference held in Detroit, USA, where he said, "When making electric vehicles, 40% less labor is needed compared to now," adding, "Therefore, we need to insource and ensure everyone has a role." He emphasized that bringing the production of parts such as batteries and motors used in EVs in-house is necessary to protect jobs and build competitiveness.

For example, Tesla, the world's largest electric vehicle manufacturer, produces many parts of its EV hardware, including batteries, directly. At the event, Farley also said, "We want to be 'number one in the world.'"

Farley's remarks come amid ongoing concerns that assembly labor decreases in the EV production process compared to internal combustion engine vehicles. In 2018, the United Auto Workers (UAW) warned that the transition to EVs could cause 35,000 of its 400,000 union members to lose their jobs. In Germany, there are also forecasts that 400,000 jobs in the domestic industry could disappear over the next decade.

Farley had previously stated in July that "Ford has too many employees." In August, Ford laid off about 3,000 employees and contract workers citing cost reductions due to weakened competitiveness. As of the end of last year, Ford's workforce numbered 183,000 employees.

This content was produced with the assistance of AI translation services.