- Ford is one of the “players” in the automotive industry that is investing the most in electrification.
- Through 2026, it plans to shell out more than $22 billion on the change.
- Electric cars require less labor to manufacture.
Ford will cut the number of employees it has in Spain. The company itself confirmed this Friday, March 10.
The idea is to get rid of 1,100 jobs at the plant that the American company operates in Valencia.
The massive dismissal at Ford has already been reported to the unions and It is part of the restructuring that the company is carrying out in Europe, said the firm.
“Ford is going to work with the unions to avoid the impact of the layoffs on the employees, the families of the workers and the communities to which they belong,” he said.
Ford’s decision has a direct explanation: the brand’s plan to stop making the Galaxy minivan and family-style cars like the S-Max.
In 2022, Ford had anticipated that it was going to postpone investments in Spain as part of the changes planned for Europe that include the production of electric vehicles in the Iberian Peninsula at the end of this decade.
The truth is that the production plan turning towards electric vehicles will determine a workforce reduction since EVs require less labor for their construction.
Mass layoff at Ford: the causes
With the launch of several new models, significant development investments and an eye on the competition, Ford is positioning itself to be a player in the electric car market.
According to Ford, the idea is to invest 22,000 million dollars in electrification until 2026, which makes it one of the car manufacturers that is going to bet the most on changing its business model towards EV technology.
According to the latest 2022 financial releases, by 2030, the company plans to have 40 percent of its global vehicle volume made up of all-electric vehicles.
Among the many models in the pipeline, Ford is developing an electric Transit van and a fully EV Lincoln SUV.
Ford’s plans also involve partnerships with other automakers to develop their electric vehicle charging infrastructure.
It has partnered with rivals such as Volkswagen and BMW, deals through which it hopes to create a network of charging stations that can be used by drivers of all electric vehicles, regardless of brand.
Now read:
Zuckerberg touts 2023 as the “Year of Efficiency”; more layoffs in Meta
Mass layoffs reach consulting firms: McKinsey’s turn
Walmart closes technology centers and relocates staff: this we know