Ford has a new strategy that will help it keep employees and build more electric vehicles.
As the electric vehicle market becomes more robust and competitive, automakers are looking for any advantage to improve profits and reduce costs. Now, Ford CEO Jim Farley has detailed how the company aims to copy Tesla’s playbook and return to an old strategy of making better electric cars.
While Ford had already seen a lot of early success with Mustang Mac E and the F-150 Lightning And with more electric cars on the way, the competition is only going to increase. As a result, the automaker’s CEO claims that the company will move its production in-house, which will not only create jobs, but help it take on rivals from Tesla and Chevrolet.
according to ElectricThe Ford CEO told reporters at an event that the company wants to produce motors, battery packs and other EV components in-house. At the moment you buy those parts, which are more bottleneck and more expensive.
In addition, the company can give employees new jobs and retain employees instead of laying off workers, since electric vehicles take about 40 percent more labor to produce than gas-powered vehicles. While the CEO has previously mentioned Tesla and has credited Elon Musk for driving electric vehicles forward and changing the industry, Ford isn’t technically copying Tesla’s playbook. This is because that is exactly how Ford was so successful in its early years.
“We’re going back to where we were at the beginning of the century. Why? Because that’s where value is created. It’s a huge shift. Ford CEO Jim Farley
The CEO wants to go back to the old days of Ford Model-A production, where he would produce everything from engines, seats, battery packs and more in his own facilities. This move can speed up production, help the company own as much of its supply chain as possible, reduce costs, and prevent job losses. This is how Ford worked in the old days and a strategy currently used by companies like Tesla, Apple, and others.
It is worth noting that Ford began work on a new facility in Kentucky earlier this year. A site that will play an important role in building electric vehicle components such as battery packs. Given that Ford is one of the “big three,” it isn’t going anywhere anytime soon, but that should help it stay competitive and have lower prices.