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Ford Reportedly to Slash Up to 8,000 Jobs After Partnering with Chinese Company to Build Electric Vehicles


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Ford Motor Co. announced Thursday it has acquired enough battery supplies to build 600,000 electric vehicles per year by the end of 2023.

The car manufacturer is relying on a major Chinese company to meet its electric vehicle production goals.

Ford has entered into an agreement with Contemporary Amperex Technology, a Chinese battery maker, to produce 2 million EVs per year by 2026.

Ford Media Center released the following statement:

Building on strong demand for its new EVs, Ford today announced a series of initiatives for sourcing battery capacity and raw materials that light a clear path to reach its targeted annual run rate of 600,000 electric vehicles by late 2023 and more than 2 million by the end of 2026.

The company detailed its global vehicle portfolio plans supporting these production goals as  part of its Ford+ plan. Ford expects a compound annual growth rate for EVs to exceed 90% through 2026, more than double forecasted global industry growth.

“Ford’s new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly,” said Jim Farley, Ford’s president and CEO and president of Ford Model e. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”

Ford plans to invest over $50 billion in EVs through 2026, targeting total company adjusted EBIT margins of 10% and 8% EBIT margins for EVs by 2026.

As Ford creates a new EV supply chain that upholds its commitments to sustainability and human rights, the company continues to plan for more than half its global production to be EVs by 2030 and achieving carbon neutrality globally no later than 2050.

“Ford announced that Contemporary Amperex Technology Co., Ltd. (CATL) will provide full LFP battery packs for Mustang Mach-E models for North America starting next year as well as F-150 Lightnings in early 2024. Ford’s EV architecture flexibility allows efficient incorporation of CATL’s prismatic LFP cell-to-pack technology, delivering incremental capacity quickly to scale and meet customer demand,” the statement added.

The Blaze noted:

By 2023, Ford Model e intends to build 270,000 Mustang Mach-Es, 150,000 F-150 Lightnings, 150,000 Transit EVs, and 30,000 SUV units.

Ford said that it has secured 100% of the annual battery cell capacity needed to meet these targets by working with “leading battery companies around the globe.”

China’s Contemporary Amperex Technology, better known as CATL, is the world’s largest manufacturer of lithium-ion batteries, controlling more than 35% of market share for electric vehicles, according to Bloomberg. Ford said CATL will provide full LFP battery packs for Mustang Mach-E models in North America beginning next year, as well as F-150 Lightnings in early 2024.

Ford is also using its current partnerships with Korean companies LG Energy Solution and SK ON to meet its late-2023 EV production targets.

Additionally, Ford and CATL announced a separate, non-binding memorandum of understanding to expand their cooperation and supply batteries for Ford’s EV markets in China, Europe, and North America.

The company split into two divisions in March: Ford Blue, which will build traditional combustion engine automobiles, and Ford Model e, which will solely produce electric vehicles.

Ford pledged a $50 billion investment into its electric vehicle business to compete with other EV makers like Tesla.

According to a Bloomberg report, Ford is reportedly planning to cut as many as 8,000 jobs from Ford Blue to boost profits and support the EV business.

Ford Motor Co. is preparing to cut as many as 8,000 jobs in the coming weeks as the automaker tries to boost profits to fund its push into the electric-vehicle market, according to people familiar with the plan.

The eliminations will come in the newly created Ford Blue unit responsible for producing internal combustion engine vehicles, as well as other salaried operations throughout the company, said the people, who asked not to be identified revealing internal discussions. The plan has not yet been finalized and details could still change.

The move would mark a significant step in Chief Executive Officer Jim Farley’s plan to cut $3 billion of costs by 2026. He has said he wants to transform Ford Blue into “the profit and cash engine for the entire enterprise.” In March, Farley radically restructured Ford, cleaving its carmaking in two by creating the “Model e” unit to scale up EV offerings and “Ford Blue” to focus on traditional gas burners like the Bronco sport-utility vehicle.


 

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