Ford Motor could be forced to dismiss employees if the Trump administration finishes subsidies and other financial support for the construction of electric vehicles, the company’s chief executive said on Tuesday.
Ford has invested largely in factories in producing batteries and electric vehicles in Ohio, Michigan, Kentucky and Tennessee, said Jim Farley, Managing Director of Ford, at a New York conference. If Republicans abolish Biden’s legislation, which made billions of dollars in subsidies and loans on projects, Mr Farley said: “Many of these jobs will be at risk.”
Mr Farley was also strongly critical of President Trump’s threat to impose invoices on the cars and accessories of Mexico and Canada. Ford makes various vehicles in Mexico, including Maverick and Mustang Mach-E and engines in Canada.
“A 25 % invoice throughout Mexico and the Canadian border will blow a hole in the US industry we have never seen,” Mr Farley said, according to a copy of his observations by Ford. “It gives free influence to South Korean and Japan and European and European companies that bring up to two and a half million vehicles to the US that will not be subject to these Mexican and Canadian invoices.”
Mr Farley’s observations at the conference, organized by Wolfe Research, offered a rare example of a corporate executive that calls into question Mr Trump’s policies or statements. In most cases, executives either offered praise or remain quiet, apparently for fear that they could cause retaliation from the president.
Even when he called into question with specific policies, Mr Farley praised the way Mr Trump “talked a lot to make the American automotive industry stronger, bringing more production here or innovation in the US” this is especially important now, The executive said because a “world race” takes place in the automotive industry, as Chinese manufacturers are expanding abroad.
“If this administration can achieve this, it would be one of the one of the most signature achievements,” Farley said.
But he added, “so far, what we see is a lot of cost and a lot of mess.”
Mr Farley’s comments have also underlined a political quandary that Republicans will face as they are trying to reverse the democratic policies aimed at promoting electric vehicles. Much of investment in factories has gone to states and areas of Congress represented by Republicans whose voters will be the ones who will lose their jobs.
