Ford Motor is attempting to build as many of its own parts as possible for its electric vehicles to offset an expected 40% reduction in workers needed to build such cars and trucks, CEO Jim Farley said Tuesday.
Farley compared Ford’s latest efforts to source its own parts to the early days of the auto industry, when companies including Ford controlled most, if not all, of the components going into a vehicle.
“We’re going back to where we were at the beginning of the century. Why? Because that’s where the value creation is. It’s a huge transformation,” Farley told reporters after an auto conference for the Rainbow Push Coalition, a human and civil rights organization founded by Rev. Jesse L. Jackson.
In addition to making sense for the business, he said retaining the jobs and workforce is another reason Ford wants to build more parts in-house rather than purchasing them from suppliers.