Ford could start producing its own batteries to create more jobs

A few months ago, former Ford CEO Jim Hackett said there was no benefit to Ford building its own batteries for its electric vehicles. Now the new CEO Jim Farley overturned the company’s stance, saying on Friday that making its own electric vehicles would actually be a pretty solid way for Ford to create more jobs.

Farley spoke on the Reuters Automotive Summit conference call on Friday, where he commented on the growth of the electric vehicle market and the vital concerns that come with it:

We are arguing (battery) cell production. I think it is as natural as [EV] the volume grows. “

The fact of the matter is that electric vehicles have 40% fewer parts and that means they are much easier to assemble. We have to solve the reality that when electrification becomes 25% or 50% of our industry in the future years, whwhat will we do with the work? One of the most obvious choices is to switch to cell production.

The fact that an electric vehicle is partially less heavy than its internal combustion engine counterparts has been a major concern for automotive workers watching the rising tide of electrification. It has been really difficult for most companies to reconcile the disparity between the desire to switch to electricity and the desire to create more jobs.

Creating an internal battery will be difficult, and from Hackett’s point of view, it wouldn’t really make sense to Ford if there were doable, well-made battery cells out there that require minimal effort to install in a car. And from a business point of view, he was not wrong. If you’re looking specifically for how to reduce labor to make a bigger profit, outsourcing a battery cell isn’t a big deal.

After all, GM and Tesla are two companies that have invested billions in setting up their own battery cell manufacturing facilities, which is … a lot of money.

Farley seems to be much more concerned with the human element than it is, which is probably a good thing, especially in this economic climate. People need jobs and Ford building their own battery cells would open up a new mode of employment.

Future electric Ford models, of course, will house batteries from external suppliers.