It seems like the excessive push for electric cars is going to put 8,000 people out of a job at the Ford Motor Company. Why? Well, according to sources, Ford is trying to cut production costs for combustion engines to invest in electric vehicles.
Ford’s New Plan
At the beginning of this year, Ford CEO Jim Farley announced the company’s “Ford+” plan. This plan included the creation of the Ford Blue division and Model e division, which handles the creation of electric vehicles. The company talks about the excitement of entering the new field. Then drop the hammer by addressing the fact that 8,000 people would lose their jobs.
The company plans on cutting $3 billion in operational costs from its gas-powered vehicles to boost profits. Ford is planning to make the cut from its salaried workforce, where the company employs about 31,000 people. So, Ford is going to be cutting 25% of its employees for these electric vehicles. It seems like they are willing to bankroll “green” by costing people jobs.
Electric cars are not bad, in fact, most people that own them like them very much. The push for them however is a bit shortsighted considering there are many problems that make mass producing them over combustion engine vehicles ineffective.
Electric Cars Are Not a Better Alternative
Considering electric cars are a focal point in the green energy movement, you can already guess that the push for them is more about politics than practicality. The truth is electric cars will not be the better alternative anytime soon. First of all, let’s talk about economic costs and the faults in their design.
Getting the new and shiniest car is always going to be exciting. Yet, electric cars are not a good investment. In order to buy an electric car, you need to pay a significant amount upfront in comparison to other cars. You will spend an average of $10,000 to $50,000 more to buy an electric car. True, electricity to charge your vehicle results in less cost per mile, especially at current gas prices. However, it’s not “free” and the equipment to make it more convenient costs not to mention the cost and inconvenience of charging when not at home.
In addition, the depreciation of electric cars is fast. In three years, your electric car will be 52% of its original value. In five years some vehicles lose up to 70% of their value! Finally, electric car batteries have to be replaced and the cost is prohibitive.
So most manufacturers typically give a 100,000-mile warranty on the battery. There’s a lot to unpack here but if you do the math on both the original owner and the used car market. The limitations and loss based on battery deterioration and replacement alone are more than enough to give you pause.
Let’s see. A $50k (relatively inexpensive) EV would be worth $15k in five years. At 15k miles/year that would be 75k miles. Maybe you’ve paid it off by then, so you may get a couple of more years as a new owner, but try selling it used. The slow charging, and cost of replacing batteries would be as much as the car is supposedly worth.
What is this going to do to the used vehicle market? How will this affect young adults getting their first vehicle or the millions of people that can’t afford a new vehicle?
“But they are environmentally friendly!”
Yeah, if you are talking about CO2 emissions alone! On the other hand, electric vehicles do impact the environment through production and maintenance. We can’t conveniently ignore the replacement cost in that respect.
Are Electric Vehicles All That Green?
A lot of people are pushing for electric vehicles because they are good for the environment. After all, they reduce the world’s carbon footprint. However, most people do not understand that in order to make these “eco-friendly” vehicles, they do indeed pollute the planet. In order to make the batteries for these vehicles, you need to mine for lithium, cobalt, nickel, and graphite. In order to mine a single ton of these materials, you will have to produce 75 tons of acid waste and 1 ton of radioactive residue. So, instead of impacting carbon emissions, the creation of electric cars has a huge ecological impact.
In addition, the contribution to pollution does not end in the creation of EV batteries. There is also the impact of charging these vehicles. Even if you look at the EPA’s myth sheets, they do admit that charging these vehicles creates carbon emissions. However, the EPA seems eager to say that green energy sources omit that.
So, why is Ford doing this? It seems like they are banking on the success of electric vehicles. Or more likely, stay ahead of government intervention. Pick a reason, the lack of infrastructure, shortage of critical materials, upfront cost, longevity, and job loss, there are a lot of obstacles to deal with.
Considering the current flaws and the fact that United States citizens cannot afford to buy only EVs, it’s a bad idea to push this hard this soon. As with most things driven solely by the “green energy” agenda, they forget logic and any long-term planning. Leaving the American people to live with the consequences.