Ford cuts US jobs after Biden administration supports company with green subsidies.

Ford Announces Layoffs Despite Green Subsidies

Ford has made the surprising decision to lay off at least 1,000 workers in the United States and Canada, despite the Biden administration’s strong support for electric vehicles and the allocation of billions of dollars in green subsidies that would benefit auto manufacturers like Ford.

The automotive giant has started notifying employees this week about the impending job cuts, as it seeks to offset the costs associated with developing and manufacturing electric cars, as reported by the Wall Street Journal. The majority of the cuts will affect engineers, particularly those working in the green vehicles sector of the company.

The decision to lay off workers comes as a surprise considering the White House’s focus on funding green initiatives and promoting electric vehicles. Ford had expressed its intention to take advantage of President Joe Biden’s 2021 Inflation Reduction Act, which allocates nearly $400 billion to green spending. Both Biden and Energy Secretary Jennifer Granholm have actively promoted Ford’s electric car fleet. In fact, Granholm even appointed Ford lobbyist Christopher Smith to serve on the Secretary of Energy Advisory Board, according to the Washington Free Beacon.

Furthermore, Ford recently secured a $9.2 billion loan from the Biden administration to construct electric vehicle battery plants.

It seems that other automakers are also making job cuts to balance their investments in green energy, as reported by the Journal:

Many automakers are focused on areas where they can cut costs to offset their heavy investments in EV development. In recent months, General Motors and Jeep-maker Stellantis both began offering buyouts, with executives emphasizing the need to control costs as they pour more money into electric and digital technology. Stellantis’s buyout offers also included unionized workers at its U.S. factories.