Ford takes inspiration from Tesla to create better electric cars

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Ford CEO Jim Farley has just announced that the company will take inspiration from Tesla's strategy by vertically integrating the production of its electric cars. A way to ensure, according to the manager, greater market share in the long term.

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While Ford already has a few successful electric car releases such as the Ford Mach-E or the muscular F-150 electric pickup (at least in the United States), the manufacturer sees the market evolve, and is looking for the most effective strategy possible to give itself a chance of remaining a dominant brand in the medium to long term.

It is in this context that Ford CEO Jim Farley has just explained how the automaker was going to inspire its strategy from that of Tesla. The leader explained in particular that he wanted to reduce the use of subcontracting to return to vertical integration of the production of electric cars.

Ford wants to vertically reintegrate the production of electric cars

Ford aims to manufacture its own motors, batteries and other components for its cars instead of bringing them in from manufacturers who subcontract manufacturing to all corners of the planet. And if we talk about Tesla, it's because Jim Farley himself refers to the brand and Elon Musk as being what really pushed the electric car forward.

However, he recalls that the bet of integrated production was also that of the beginnings of Ford – which in its time completely revolutionized the industrial manufacture of cars by launching the Model-A and Model-Y. Jim Farley explains it this way: We're going back to what we were doing at the turn of the century. Why? Because that's where the value creation is. It will be a huge transformation.

In addition to making it easier to differentiate with proprietary technologies, exclusive features, and optimizations, vertically reintegrating production also makes sense for Ford from an employment perspective. Indeed, according to the boss of the manufacturer, the manufacture of electric cars requires 40% less labor compared to that of thermal vehicles.

With this strategic reversal, however, Ford should allow its employees in thermal production lines to obtain positions in the production of electric cars and their various components. Unlike other manufacturers who will probably have to lay off some of their employees once the electric transition is complete, Ford is giving itself the chance to keep its staff, on the contrary, by offering options to convert to electric vehicles. company.

It remains to be seen whether other manufacturers will imitate Ford as in the past – or if the reflex of a production chain relocated to the four corners of the world will remain the norm among the competition, while the manufacturer becomes the second to make the same choice, in this area, as Tesla.