Amidst swirling rumors of job cuts as the company reels from recent losses, Ford’s CEO has made a call to improve efficiency at the company following disappointing earnings.
Jim Farley said that Ford requires 25 percent more engineers than other automakers to do the same amount of work, as stated on a SiriusXM radio show set to air on Friday (via Automotive News).
“It takes us 25 percent more engineers to do the same work statements as our competitors,” said the Ford CEO on Cars & Culture with Jason Stein. “I can’t afford to be 25 percent less efficient.”
Last week, Farley said that the automaker missed out on $2 billion in 2021 for a nearly-$20 billion decrease from profits in 2021. He also added that Ford’s electric vehicles (EVs) wouldn’t turn a profit until 2025.
Farley also said that Ford planned to cut about $2.5 billion in costs in 2023, adding that job cuts are up for consideration.
Ford has also announced plans to reduce bonus amounts for hundreds of top executives, including Farley.
Unlike many automakers facing an industrywide price war, Ford followed Tesla’s move to cut prices last week, dropping the price of its flagship Mustang Mach-E. Despite being attractive to consumers, the price cuts will also narrow Ford’s already-slim profit margins on the Mach-E.
Ford is also considering plans to sell its Saarlouis, Germany plant to Chinese automaker BYD as another means to cut costs.
Ford Led with the Most Recalls in 2022 https://t.co/pr947XKPER
— TeslaNorth.com (@RealTeslaNorth) December 31, 2022
