Ford Cuts Two Thirds of EV Jobs After Taking Massive Losses on Each Vehicle Sold

In a significant shift from the previous year’s hiring plans, Ford Motor Co. is now reducing its workforce at the Rogue EV Center in Dearborn, Michigan, as the demand for electric vehicles (EVs) has not kept pace with the increased production volume.

According to a Ford spokeswoman who spoke to the Detroit Free Press, only 700 out of the 2,100 autoworkers will remain at the plant, with the remaining employees being offered reassignment or retirement packages.

The slowdown in EV sales has also affected other automakers, such as Stellantis, which recently announced layoffs for approximately 400 white-collar employees in engineering, technology, and software roles.

The United Auto Workers, who went on strike near the end of 2023, negotiated a $50,000 payout as part of the retirement packages being offered to Ford employees.

Despite government assistance programs and incentives, including a $7,700 tax credit per vehicle, EV adoption rates have not matched the increased production volume.

High prices and other concerns have deterred consumers from embracing electric vehicles.

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In response, the Biden administration has delayed strict emission regulations that would require most new vehicles to be electric in the coming decade, while still maintaining the same final goal timeline.

This decision aims to appease the auto industry and auto union workers who are concerned about the impact of these changes on their operations.

Ford reported a loss of $4.7 billion on EVs in 2023, surpassing its mid-year projection of $4.5 billion.

The company sold around 72,608 EVs, incurring a loss of nearly $65,000 on each vehicle sold.

Ford expects to lose between $5 billion and $5.5 billion on EVs in 2024, indicating an extremely competitive pricing environment.

General Motors, another U.S. automaker giant, has also scaled back its EV production plans.

In October of last year, the company announced a reduction in its goal of producing 400,000 EVs in North America by mid-2024.

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GM’s fourth-quarter earnings revealed a $1.7 billion loss in the production and sale of its EV line, although other sources of income kept the company profitable overall.