(RepublicanJournal.org) – President Joe Biden’s administration has worked hard to push green energy agendas, incentivizing car companies to shift from gas-powered combustion engines to electric vehicles (EVs). Ford recently announced it would cut yet another wave of employees to keep up with the trends and boost its transition to EVs.
Ford Cuts American Jobs After Biden Admin Boosts Company With Green Subsidies https://t.co/RDHTvKx33U
— Andy Carlotti (@CarolAndy__) June 28, 2023
The Biden administration recently offered Ford a $9.2 billion loan to subsidize the effort, according to The Washington Free Beacon, but the motor vehicle company will still apparently need to dig deep to stay on schedule. Ford plans to lay off 1,000 or more workers between locations in the United States and Canada.
The Wall Street Journal reported that executives at Ford felt their yearly expenses, ranging between $7 billion to $8 billion, were still too high given the amount of investment the company still had ahead. The car manufacturer reportedly expects to lose about $3 billion in 2023 due to EV development costs and insists it has no choice but to offset the expenses through layoffs.
Ford isn’t alone. GM recently offered buyouts to 5,000 workers to reduce its yearly costs by $2 billion over the next two years. Stellantis, which owns Jeep, also provided buyout options, allowing anyone who worked there for over 30 years or was over 55 and had been with the company for at least 10 years the choice to retire early.
Growing investment costs might constitute a valid concern for carmakers, especially amid growing demand for EVs, but massive losses might not be as profound as executives allege. Macrotrends shared that Ford brought in near-record profits for the company in 2022, having earned $158,057 billion for the year. It has steadily increased its revenue since 2020, with annual profit increases of 7.23% to 22.64%.
Still, labor advocate and UAW President Shawn Fain argued that extremely profitable companies like Ford would “continue to make money hand-over-fist” regardless of which engine type they sell. He criticized the massive federal loan to the manufacturer, especially in light of announced layoffs, pointing out the investment does nothing to benefit workers.
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