Thread regarding Ford layoffs

How to reduce vehicle cost? Reduce salary cost.

“Ford's chief executive says he expects the cost of building electric vehicles to fall to the point that in coming years automakers will be battling each other for sales of EVs priced around $25,000. It currently costs much more to build an EV than it does one powered by a gas engine. The company's Mustang Mach-E electric SUV, with a starting price around $44,000 but can run much higher, costs about $25,000 more than a comparable Ford Edge gas SUV.”

The battery costs Ford $18,000.
Unsustainable, unless salary expense is reduced tremendously.

“A price war already is happening in China, where more than half the electric vehicles in the world are sold today, Farley said. The most popular one is a van made by Chinese manufacturer Wuling that costs about $8,000, he said.
Farley conceded that getting to the lower price point will be challenging, with many things to work on at once.
Michelle Krebs, executive analyst with Cox Automotive, said Ford has a long way to go to reach the cost reductions that Farley outlined.”

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Post ID: @OP+1h1zxeJj

6 replies (most recent on top)

Lol, what you need to lose is all the pension debt you are carrying along. There is a reason companies don't get old. All the load you are carrying from the olden days...

And yes, quality issues and recall costs. I do think these costs may be artificially bloated, likely for some tax benefit? But no one in America truly cares about quality. People don't know what quality is or what it looks like anymore anyway. Compare an American door handle in real life with a European one and you know what I mean.

You buy an F150 in the rust belt and it turns orange in a year. Then you are amazed at the rusted truck and buy yet another one. Unless NHTSA complains, you won't know your vehicle is close a lemon anyway.

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Post ID: @dedk+1h1zxeJj

The car in China was that cheap because they can force people to with like slaves for cents/hour. The US should never allow importation if vehicles made in China.

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Post ID: @2mrw+1h1zxeJj

Maybe if ford valued technical experts and not MBAs and dropped the bureaucracy.

The car in China selling for 8k probably had less then a 1000 people for the entire product including production.

Ford throws bodies at the problem instead of intelligence.

Perhaps michigan is just a washed up aged talent pool.

I left ford and have trippled my salary and still am in michigan. The lack of intellectual activity and obtainable goals among management at ford was staggering.

Wages don't need to come down. Waste needs to leave. How many cubicle farms exist at ford with name tags of people you have never even met. People who have not real output except to support old processes.

This is why companies like rivian and tesla despite all their quality issues will succeed. America can no longer finance people who are just phoning it in for retirement with no aspirations or goal to actual provide value to the bottom line.

Two buckets of people exist. Those who leave ford knowing it's lost as a company and those who let it eat their soul so they just take advantage of the broken system to either do nothing for 30 years and die or join the boys club "aka deal with the devil" and grow smug in their ignorance.

I am at 5 years of experience and am making 200k in stable income. This is because I focus on providing real value and understanding the technology at a deep level and I didn't play any politics or back stabbing to get here. (Impossible at ford)

Ford is essentially a government organization and is not the place to be unless your at the top of the pyramid.

If F-150 falls its the end of the road.(doubtful)

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Post ID: @1uly+1h1zxeJj

This will actually be easy for Ford to achieve. LL5's are like 2.5x smarter than LL6's and 5x smarter than GSR's. So they're actually saving money if they were to get rid of 2 LL6's and maybe 1 GSR per each LL5. And that LL5 would still have brainpower left over! This is just one example. See how I save the Company money with a few strokes of the keyboard?!?!

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Post ID: @unf+1h1zxeJj

Nope. Less recalls and better quality is the fix. Those numbers and cost do not lie.

We are the absolute worst at the moment.

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Post ID: @gfi+1h1zxeJj

Do the math. We currently sell vehicles to Americans for $50,000 and up. We need to cut expenses by at least half to be competitive. We need to lose a lot of “management” salaries.

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Post ID: @gqr+1h1zxeJj

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