Ford Authority

Jim Farley Says That EVs Require Far Less Labor To Produce

Ford CEO Jim Farley has been quite candid with his remarks regarding the automaker’s pivot to electric vehicles and what that means for the company, as well as the world as a whole. In fact, the executive recently stated that he believes the automaker employs “too many people,” after which 3,000 employees and contract workers were laid off. With EVs utilizing fewer components than their ICE counterparts, this also likely means that FoMoCo won’t need as many workers to build them as well, a fact that Farley pointed out while speaking at a recent conference in Detroit, according to Financial Times.

2022 Ford F-150 Lightning

“It takes 40 percent less labor to make an electric car, so…we have to insource, so that everyone has a role in this growth,” Farley said. “We have a whole new supply chain to roll out, in batteries and motors and electronics, and diversity has to play an even greater role in that. If Henry Ford came back to life he would have thought the last 60 years weren’t that exciting, but he would love it right now because we’re totally reinventing the company.”

Jim Farley also noted that the upcoming EV transition will lead to “storm clouds” forming, largely due to the fact that it’s expected to result in fewer jobs in the automotive industry as a whole. In fact, the United Autoworkers Union previously stated that it believes around 35,000 of its 400,000 represented workers to lose their jobs as a result of this pivot. Additionally, Germany expects that number to reach as many as 400,000 in that country alone.

However, as Ford Authority reported last week, Farley also believes that the automakers’ efforts to bring more parts production in-house – such as EV batteries and motorswill save at least some of those jobs, though suppliers figure to lose out as a result of the change.

We’ll have more on Ford’s electrification efforts soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Michael J Genzale

    As a 71 year old ICE car owner my learning curve on EVs is straight up. For a given manufacture, say Ford in this instance, are there very many fewer electric motors used across the range of different vehicles as opposed to the many, many different ICE that one uses?

  2. mllcpa

    Henry Ford would love the “reinvention” of the company? Henry Ford fought against any changes to the Model T!

    So easy to talk about the loss of jobs as long as it isn’t yours being eliminated.

    Where does all the corporate speak come from anyway?

    1. Bill Howland

      Haha – Henry Ford obviously was planning on electric model t’s since he had huge warehouse full of batteries – obviously planning for it since AT THE TIME over 100 years ago, Electric cars were slightly more popular… But then even with yet to be charged batteries, the warehouse burned down….

      Somebody did not like Henry’s Idea.

      After a while of course – in the late 1920’s Henry was forced to accept the desirability and the practicality of the new “Model A”, which inspired the Song in vogue at the time, “Henry made a Lady out of Lizzie” haha!

      1. RWFA

        Please tell us more about this burning warehouse. Sounds like you have put your history in a blender.

        1. Bill Howland

          Nope don’t waste my time with insults from the illinformed.


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