Thread regarding Ford layoffs

911 call to suppliers, make our losses yours.

So after making significant investments to support Fords fantasy volume projections for EV’s, now suppliers are asked to deepen their losses by reducing costs. Another lesson on why the supply base ranks Ford as the least trustworthy manufacturer to work with.

With demand for EVs falling behind expected levels of growth, Ford has responded by delaying certain models, scaling back the footprint of future plants, and cutting supplier orders as a result. This is a stark turnaround from just a year ago, when suppliers like SK On and Magna were reaping the benefits of both government incentives and soaring demand, all of which has taken a sharp turn as consumers are now dictating the pace of EV adoption. Along with Ford, suppliers are feeling the pinch, cutting jobs while maintaining a positive longterm outlook. However, with inflation showing no signs of easing and demand waning, Ford is now asking its suppliers to help in its quest to drive down costs, according to Automotive News.

Ford F-150 Lightning Rouge Electric Vehicle Center Expansion - Exterior 002 - Rear Three Quarters

Ford recently sent a memo to its EV suppliers as a “call to action” as it seeks ways to drive down the cost of producing EVs, specifically, asking for ways that the entities could partner up to make that happen. This move comes as Ford expects its all-electric Model e division to lose around $5.5 billion in 2024, even as it has scaled back its planned investments in that endeavor. As such, it’s asking suppliers to create “incremental cost-reduction proposals” for current and future products, in areas such as “commercial, design, content, footprint, and value chain.”

“We have all invested heavily in the success of the EV business, and we will all win or lose together,” Liz Door, Ford’s chief supply chain officer, said in the memo. “To enable affordability, it is of paramount importance that our EV portfolio achieves further levels of material cost efficiency.”

Ford Rouge Electric Vehicle Center F-150 Lightning Production Process - Exterior 001 - Front Three Quarters

“We need your best ideas to drive cost reduction, even if they have been previously rejected by Ford,” Door said in the memo. “We also would be willing to consider ideas that may require investment but support profitability. Everything is on the table. This includes adjusting capacity quickly downward where necessary, repurposing capital as needed, understanding spending curves, and discussing all options with Ford.”

We’ll have more on this soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

by
| 1530 views | | 11 replies (last ) | Reply
Post ID: @OP+1szbeDqk

11 replies (most recent on top)

Finally Ford purchasing my realize they are the elephant in the room!

by
| | Reply
Post ID: @5eet+1szbeDqk

Oxymoron? Good people at Ford Purchasing. LOL

by
| | Reply
Post ID: @4suw+1szbeDqk

All Ford needs to do is tell the suppliers to cut costs and Ford will reinstate the concessions when things turn around, like they did when salaried gave up double time on Sundays. Oh wait. Never mind...

by
| | Reply
Post ID: @2bhf+1szbeDqk

@dgh+1szbeDqk It will be interesting to see who is left in purchasing by the time Liz Door is gone. Seems like most of the good people over there have left already and the remaining are burning out due to a combination of stupid directives from the top along with too much work.

Hard to have effective negotiations when your buyer joined the company 6 months ago.

by
| | Reply
Post ID: @1yff+1szbeDqk

I always thought, when it came to EV vehicles, all auto companies were putting the cart before the horse. I'm sure they will eventually outsell ICE vehicles, but it had to come organically and not forced upon us. There was and still isn't an infrastructure for them. Of course, the auto companies expected the Federal and State governments to pay for it while massively profiting from them and ignoring the lack of infrastructure. It should have been built in unison. But, hey were so wrong in the push of EVs. The auto companies should have played the long game instead of betting everything and then calling with a pair of twos.

by
| | Reply
Post ID: @svb+1szbeDqk

@xwv+1szbeDqk and @zvy+1szbeDqk are spot on.

Farley continues to push blame downward and has not been forthcoming enough about his part in our strategy missteps. It creates a culture of distrust and blame. And then Farley wonders why quality issues are rampant. Everyone else is following his lead in shifting blame/CYA. If you try to do the right thing, you will have a target on your back.

In my opinion, rank and file trust in Farley is irreparably broken. There’s no path back for him and the only way is out.

by
| | Reply
Post ID: @xxt+1szbeDqk

Ford will continue to do the bidding of global elites and the world, economic forum agenda -to its own detriment.

by
| | Reply
Post ID: @lwk+1szbeDqk

None of your recommendations or observations are supplier driven. All are Ford designed and required supplier investment to support production. Investment that will never be recovered. Liz Door has a lot of courage asking for concessions after deliberating misleading suppliers on fictitious EV volumes. Her days are numbered at Ford and it’s unlikely that she will land another auto role after this debacle. Yet another disappointing mark against Ford Purchasing.

by
| | Reply
Post ID: @dgh+1szbeDqk

altho they did talk about design changes and "too much content" in that article. which seems like the right idea. way too much content in vehicles that nobody really cares about. oh yeah its there but who uses it? software and hardware content. paddle shifters, really? drivers want to shift always get a manual. more buttons than speed racer's mach5 had on your steering wheel, programmable? bah. do you really need to leather wrap everything? all these different separate trim pieces for decoration on the IP and doors. i just cut at least $1000 in content (probably more) in this small paragraph without even trying. low hanging fruit. go back to 5 dollar tiny keyfobs, who needs those giant things? good thing us internet commenters are not in charge!

by
| | Reply
Post ID: @pzg+1szbeDqk

“We need your best ideas to drive cost reduction, even if they have been previously rejected by Ford,”

So now Ford management is so desesperate that finally is willing to listen? LOL. I doubt it. I know how the game is played at Ford. I have submitted technical solutions, just to have them modified by managers and acolytes. If everything goes well (it rarely does), these managers get all the glory. If something goes bad, I am the one to blame.

I have also seen asinine decisions, and got into verbal fights with managers to stop the wrongdoings. The only things I got were more stress, and managers wanting to get rid of me. Luckily, I am a slow learner, but I finally learned. If it is not assigned to me, I give no comment. If it is assigned to me, and managers modify my work, I send emails explaining the reasons why I designed it that way and the consequences of changing my design. Period.

I said luckily, because I believe I would have been laid off in 2019 (and ever since) if I had continued to do "the right thing". BTW, the more a company plasters the walls and emails with slogans, the more sure I am management doesn't comply or care about these slogans. And Ford might be willing to listen to suppliers today, but as soon as it regains a position of power, Ford will mistreat suppliers again.

by
| | Reply
Post ID: @xwv+1szbeDqk

Ford management will never admit responsibility. What Farley and Billy should say is, look guys, I/WE F---ed up and we need your help. Nothing will ever change for the better until FOMOCO holds its own management responsible.

by
| | Reply
Post ID: @zvy+1szbeDqk

Post a reply

: