As the electric car market picks up steam and gets more competitive, automakers are looking for any advantage to improve profits and cut costs. Now, Ford’s CEO Jim Farley has detailed how the company aims to copy Tesla’s playbook and go back to an old strategy to make better EVs.
While Ford has already seen plenty of early success with the Mustang Mach-E and the F-150 Lightning and has more electric cars on the way, the competition will only grow. As a result, the automaker’s CEO claims the company will move its production in-house, which will not only save jobs but help it take on rivals from Tesla and Chevrolet.
According to Electrek, Ford’s CEO told reporters at an event that the company wants to produce motors, battery packs, and other EV components in-house. Right now, it buys those parts, which is a bottleneck and more costly.
Plus, the company can give employees new positions and keep staff rather than layoffs, as EVs take about 40 percent less labor to produce than gas vehicles. While the CEO has previously mentioned Tesla and has credited Elon Musk for moving EVs forward and changing the industry, Ford isn’t technically copying Tesla’s playbook. That’s because this is precisely how Ford was so successful in its early years.
“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.” Ford CEO Jim Farley
The CEO wants to return to the old days of Ford Model-A production, where it’ll produce everything from the motors, seats, battery packs, and more at its own facilities. This move could speed up production, help the company own as much of its supply chain as possible, cut costs, and prevent job loss. This is how Ford worked back in the old days and a strategy currently used by the likes of Tesla, Apple, and others.
It’s worth noting that Ford broke ground on a new facility in Kentucky earlier this year. A location that will play a significant role in building electric car components like battery packs. Considering Ford is one of the “big three,” it’s not going anywhere anytime soon, but this should help it remain competitive and lower prices.