After Tesla And Rivian, Ford’s Workers Will Be The Next To Lose Jobs

After Tesla and Rivian, Ford will be the next to plan major layoffs. 

While the popularity of electric vehicles is experiencing an unparalleled upsurge worldwide including in Malaysia, the automotive sector is starting to feel the effects of continued supply chain issues and growing recession fears.

For the record, sales doubled in the US and increased by 65% in Europe last year. However, supply chain issues and increasing material and labour prices are affecting the auto industry.

Although more automakers have introduced new car, SUV, and pickup truck options over the past two years, there are still barriers due to the slowing of the world economy and greater inflation and borrowing rates.

Ford stated on June 22 that it decided against Saarlouis, Germany in favour of Valencia, Spain to grow its EV production in Europe. However, a Ford official told Reuters that there will be "substantial" reductions in the number of workers at both that facility and its Saarlouis manufacturing factory.

The representative claimed that restructuring would take place soon and that there would be a "substantial" number of jobs lost.

According to Ford spokesperson Michael Baumann, "we are not yet manufacturing fully electric vehicles in Valencia." However, "compared to the current position, Valencia will need to be restructured in order to make that happen."

Ford's Saarlouis plant, which will continue to make its Focus passenger car through 2025, was the other candidate for the project.

We will now assess potential future Saarlouis, Germany, site prospects, which must also take restructuring into account, stated Baumann.

By 2026, Ford wants to sell 600,000 EVs a year in Europe. The company is proceeding with its $2 billion investment plan to upgrade its Cologne, Germany factory so that it may begin producing EVs there in 2023. Ford has plans to electrify both its consumer-oriented Ford Puma and its fleet of electric Ford Pro trucks.

Ford wants to sell over 2 million EVs by 2026 and have a 10% company adjusted EBIT margin, so adding EV vehicles is part of that strategy.