Auto Express

Ford says it must cut 3,000 jobs to build electric vehicles and stay competitive

Image for article titled Ford says 3,000 jobs must be cut to build electric vehicles and stay competitive

image: Jeff Kowalsky / AFP (beautiful pictures)

Ford is cutting about 3,000 jobs after pledging only about 3,000 to get funding from Michigan, German carmakers are setting up supply chains in Canada for predictable reasons, and the Hino headache won’t go away for Toyota. All that and more in Morning shift for Tuesday, August 23, 2022.

First Gear: Offers and Cuts

In a memo to employees on Monday, Ford CEO Jim Farley said the company needed to cut its workforce – a total of 3,000 salaried and contract jobs mainly in North America. and India – because of the fundamental change in the types of vehicles they are producing. Are from Reuters:

Ford CEO Jim Farley has said for months that he believes automaker Dearborn, Mich. There are too many people and their workforce does not have the skills needed as the auto industry shifts to electric vehicles and digital services.

“We are eliminating work, as well as reorganizing and simplifying functions across the entire business. You’ll hear more specific insights from leaders in your business this weekend,” Farley and Ford President Bill Ford wrote in a joint email.

Ford shares fell 4.8% in midday trading amid a steeper fall in Wall Street.

Like other established automakers, Ford has a workforce primarily hired to support its traditional combustion technology product line. Going forward, Farley outlined a strategy for Ford to develop a range of electric vehicles. Like Tesla, Ford wants to generate more revenue through services that rely on digital and connected software.

This is not a surprise; Farley has been outspoken about the possibility of being fired since the spring. However, in the intervening months, Ford received $100 million in taxpayer-funded incentives from Michigan subject to it creating at least 3,030 jobs and investing $1 billion in state before June 2024. 3,030 is technically more than 3,000, and the automaker admits “a substantial portion” of what’s lost in the US will be in Michigan. However, Ford believes that the rebalancing is necessary. Are from Detroit Free Press:

The language of the incentive agreement clearly notes that those new jobs must complement the existing hourly pool. But it makes no mention of what might happen if Ford cuts salaried positions, paving the way for Ford to deport thousands of white-collar Michigan workers and still be able to cash in on a huge public incentive. giant.

In Monday, [Ford spokesman Mark] Truby said the 3,000 employee layoffs announced this week will not affect the company’s commitment to the project tied to tax incentives. “

So net we are adding a lot of jobs in Michigan,” Truby said. “It was a rebalancing because the jobs we talked about adding were hourly employees. The jobs we are talking about today are white collar jobs. On an absolute basis, we still add jobs in Michigan if you look at both commitments. “

Ford hasn’t said if more cuts are possible, but when asked, Truby said, “This is all we have to announce. We will continue to manage the business to fulfill our plan and have an exciting future. “

A deal has terms, and it has spirit. As a general rule, it’s foolish to trust any company to honor the latter.

2nd Gear: Canada Is Key

Volkswagen and Mercedes-Benz have inked deals in the Great White North to source necessary raw materials for EVs, including nickel, lithium and cobalt, according to Bloomberg by way of Automotive News:

The memorandums of understanding will be signed on Tuesday in Toronto, attended by German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau, who asked to remain anonymous to discuss classified information.

Germany and Canada plan to work together in “area such as critical raw materials,” Scholz said during a press conference with Trudeau Monday in Montreal.

“I am pleased that among the many declarations being signed during our visit are those planned by Volkswagen and Mercedes, for example, which involve closer cooperation in the field of this area,” said Scholz.

If you think this has anything to do with the fact that automakers will need to establish North American provenance or fair trade of many ingredients to provide a $7,500 tax credit to future consumers, see you’re right!

“I am pleased that among the many declarations being signed during our visit are those planned by Volkswagen and Mercedes, for example, which involve closer cooperation in the field of this area,” said Scholz.

VW’s deal is designed to shorten the supply chain for its US facilities and avoid difficulties related to tariffs and tax regulations, one of them said. The move is partly motivated by new rules that US President Joe Biden signed into law last week, a source said.

A VW spokesperson said the automaker and its battery business unit, PowerCo, are working to strengthen their battery operations, “particularly in terms of sustainable supply chains and reliable”.

“The same is true for the very promising North American market,” the spokesperson said by email. A Mercedes spokesman declined to comment.

Expect more news of this nature in the coming months.

3rd gear: France will give you $4K for this one simple trick

All you have to do is become a French citizen (where are you all going?), live in an urban area and trade your car for an electric bike. Are from Electrek:

According to the report of Time, a full €4,000 incentive is given to lower-income people living in low-emission urban areas. Wealthier people who convert to two-wheelers will receive a discount commensurate with their income. For those who want to buy a new e-bike but are not ready to give up their polluting car, a subsidy of up to €400 will be available.

Some cities even offer more generous subsidies for e-bikes. The Green-Social Council of Paris offers up to €500 for the purchase of an e-bike or a folding bike.

This is part of an ongoing campaign in France to drive people away from cars and towards public transport, cycling, and walk. We’ve seen it work in advertising, where automakers went on a rampage when they suggested that not everyone should drive or own cars. I’m sure they will like this.

4th gear: Toyota can’t shield itself from Hino

Hino, Toyota’s commercial truck unit, has been cheating on emissions regulations for a very long time – almost 20 years. We mentioned yesterday How the truck maker halted production of some models, but the falsification of dates began two years after Toyota acquired Hino in 2001.

Granted, there are limits to the level of control or oversight Toyota can exercise over Hino, but the connection between the two companies at the very top is pretty clear. Are from Reuters:

“Tokai’s responsibility is very serious,” said Seiji Sugiura, senior analyst at Tokai Research Institute Tokyo, adding that Toyota Responsible for corporate culture at Hino.

Hino became a Toyota subsidiary in 2001 and nearly all of the presidents since then have been former Toyota employees.

Although Toyota has performed the necessary duties as the parent company in approving important matters and providing governance advice, Toyota cannot directly interfere with Hino’s management. , Toyota Communications Director Jun Nagata said.

“I don’t believe we can interfere,” Nagata said, adding that restructuring the company and protecting Hino’s brand is up to Hino.

The “total number of vehicles involved in data fraud” is now 640,000, according to Nikkei Asia.

5th gear: Stellantis, Renault hopes to return

Return to France, where Stellantis – owner of Peugeot and Citroen, among other brands – and Renault are restarting production after the annual summer break. The difference between this year and the same time in 2021 is that French carmakers don’t expect much production to suffer due to supply chain problems, which is a good sign. Are from Reuters:

A spokesman for both companies said that production at the Renault and Stellantis car plants in France – which is closed for the annual summer holiday – will resume in a more normal manner by the end of August 2021. , when chip shortages led to a series of product shutdowns. .

A Renault spokesman said: “We expect production to continue as normal.

A spokesperson for Stellantis said: “Our production facilities in France are back up and running well after the summer break, still amid a semiconductor shortage that requires daily monitoring by our teams. we”.

Hope, for Stellantis, this is a sign that it will end the year strong after beat the prediction for the first half.

Reversed: A Memorable End to the Most Boring Race

It’s on this day in 2009, Rubens Barrichello, then driving for the Brawn GP with a 100% championship rating, was crowned the 2009 European Grand Prix at the short Valencia track. This is his first win in 5 years – since his Ferrari days – and will be his second-arrive-the last in Formula 1.

If it weren’t for that, this Grand Prix would be completely forgotten, like Wikipedia Report not once pass is recorded. Here’s what Barrichello had to say after the race:

It has been great. It was a weekend that I will never forget, especially after five years you don’t forget how, but it was tough. In the middle of the race they told me to push, push, push, and even though you’re pushing like hell, there are a few things that go through your mind. You know you can’t make any mistakes and you want to do it for yourself, you want to do it for the country and you want to do it for your family. There was a lot to go through in my mind but the car was perfect and I want to thank the team for that because it wasn’t just me. The car is really brilliant.

Neutral: Remember Valencia?

Image for article titled Ford says 3,000 jobs must be cut to build electric vehicles and stay competitive

I recall this race being such a big deal when it was first announced. Today, it feels like half the F1 calendar consists of street circuits, and a lot of it is bad. But designmed was promising, and there was a part of me – a teenager with round eyes – that thought this will be the next Monaco. Now it is mainly remembered for being the place Mark Webber flies for the second time. All told, F1 only raced here for five years.

Source link


News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button