According to Bloomberg, Ford is preparing to lay off many thousands of staff members in order to finance its electric vehicles (EV) initiative, which helps the Biden administration meet its climate targets.
As reported by Bloomberg, the firm will lay off around 8,000 people to increase profits and fund its increase in EV manufacturing. After selling 27,140 vehicles in 2021, Ford will invest about $50 billion to produce 2 million electric cars per year by 2026, according to Reuters
“These ‘green’ energy lunatics are adding gasoline to the fire and they are the very last thing that America needs during a recession,” EJ Antoni, an economist with the Heritage Foundation, told reporters.
President Joe Biden made the claim in a speech on Wednesday that his green energy change would lead to more employment.
“When I sit and think about global climate change — I just imagine more employment,” Biden stated.
In accordance with Biden’s climate agenda and zero-emissions targets consistent with the Paris climate goals, Ford set a goal to make electric vehicles make up between 40 and 50% of its overall sales in the United States by 2030, according to a news release from the White House last year.
“Manufacturers will create less conventional, dependable engines in the United States and will instead focus on battery production in other countries,” Antoni explained to DCNF.
“It also means new cars will be more costly, further punishing the middle class and poor people who will be forced to keep driving older cars while they are still accessible, or shift completely to less popular options like public transport.”
A Ford spokesperson declined to discuss job losses, but said that these changes are taking place at the firm to fulfill its “transformation strategy.”
“We have cost structure goals along the road to becoming lean and as efficient as the best within the industry,” he added.