Ford Motor Co. is contemplating manufacturing battery cells for electrical autos as a option to offset potential job losses on account of merchandise that require fewer components to construct, CEO Jim Farley stated Friday.
Talking at a Reuters Automotive Summit, Farley stated Ford plans to transition its work drive from constructing inside combustion engines to assembling inverters and electrical motors, however that will not be sufficient. The UAW lately has raised considerations about employment ranges ought to most automakers transition to merchandise that are not as difficult to construct.
“The actual fact of the matter is electrical autos have 40 % much less components, and which means they’re quite a bit simpler to place collectively,” Farley stated. “We do have to resolve for the fact that when electrification turns into 25 % or 50 % of our trade within the coming years, what are we going to do concerning the jobs? One of many apparent decisions goes into cell manufacturing.”
Thus far, Ford has relied on suppliers to construct battery cells that can energy its first wave of EVs, together with the Mustang Mach-E crossover, E-Transit van and F-150 electrical pickup. This yr, Farley’s predecessor, Jim Hackett, famous there was “no advantage” for Ford to construct its personal batteries, saying the technique gave the corporate extra flexibility if EV demand falters or a chemistry breakthrough makes as we speak’s battery expertise out of date.
Nevertheless, Farley stated Friday that Ford would think about battery manufacturing as its EV portfolio expands.
“Completely, we’re discussing it as a staff,” Farley stated. “We predict it is the pure time now as a result of our quantity is basically rising. What we’re discovering is there’s not lots of capability flexibility for those who purchase your batteries from another person. There’s lots of different causes past value to make a transfer. It is one thing we’re discussing inside the firm, and it is the best time to debate it.”