Ford Motor Company severs EVs from traditional business, threatening massive job cuts and

Ford Motor Company will sever electrical vehicle (EV) manufacturing from its business selling traditional gas-powered vehicles, the auto giant announced at the beginning of the month. The official announcement came with a pledge to invest huge sums in the global scramble for electric vehicle sales. Ford will invest $30 billion in EVs, a massive infusion which will likely not result in profits for years. To pay for this, the company plans to cut its internal combustion business to the bone in order to squeeze as much profit as possible.

The automaker expects EVs to comprise 30 percent of global sales within 5 years and half by 2030. The new EV unit will be called Ford Model e, while the combustion side will be known henceforth as Ford Blue. Both units, along with the recently created Ford Pro that focuses on commercial and government fleet buyers, will collaborate in some areas but operate substantially independently from one another, measuring profits and losses as separate entities.

Ford Motor Company World Headquarters (WSWS Media)

Ford has set the bar to cut structural expenditure by a whopping $3 billion before 2026, by “streamlining” its legacy plants. Ford expects to produce 2 million electric vehicles in 2026, far beyond the 600,000 EVs projected next year.

“We’re literally splitting the business in half,” said CEO Jim Farley. His strategy is “sharpening our effectiveness … by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs.”

Hedge fund managers and corporate investors, who had been holding Ford stock at bargain basement levels for more than a decade while they demanded profit margins on a par with Tesla and Amazon, applauded Farley’s announcement, boosting Ford shares over 8 percent the very same day.

When Farley became CEO at the end of 2020, he referred to himself as a “change agent” within the company. Since becoming CEO 16 months ago, Farley, 59, has accelerated Ford’s EV plans, tripling output of the Mustang Mach-E and doubling production for the F-150 Lightning which is due out this spring.

Last September, Farley poached Doug Field, the head of the Apple’s electric car project and a former top executive at Tesla. As president of the Model e division, Field’s task will be making the legacy automaker “more nimble.” “Cost-cutting, streamlining, disrupting” are all buzzwords for massive attacks on production workers’ jobs and whatever is left of their wages and working conditions.

Read More: Ford Motor Company severs EVs from traditional business, threatening massive job cuts and

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