EDITO: What type of green?

Bloomberg reports that Ford is preparing to lay off up to 8,000 workers to boost profits to fund production of more electric vehicles, which the automaker is struggling to sell in the first place.

That’s not exactly what President Biden had in mind when he said last week, before it was announced he had tested positive for covid, that he equates the fight against climate change. to job creation.

Ford sold about 27,000 electric vehicles in 2021 and now plans to spend $50 million to manufacture 2 million a year by 2026. The decision is not driven by market demand (which is growing for electric vehicles , by the way), but by government decree. Recent mandates on greenhouse gas emissions are forcing automakers’ hands.

The demand for electric vehicles is increasing. Kelley Blue Book reports that U.S. electric vehicle sales more than doubled in the first quarter of 2022, year over year. Electric vehicles now represent 5.2% of the US auto market.

Five bucks a gallon will motivate, but transform an industry in no time? California has banned the sale of gas-powered cars by 2035; other states are expected to follow. So we’re expecting an even larger caravan of gas-powered SUVs and pickups from the east.

The United Auto Workers union, meanwhile, predicts the loss of 35,000 union jobs in the industry as electric vehicle manufacturing increases, the Wall Street Journal reports. Electric vehicles require fewer parts, and therefore fewer workers to assemble them.

In 2021, Arkansas was home to 1,330 registered EVs, representing 0.13% of the total EV market in the country. California accounted for 42% of the market. Top 10 states were Florida at 5.7%, Texas at 5.1, Washington at 5, New York at 3.2, New Jersey at 3, Arizona at 2.8, Illinois at 2 .6, Colorado at 2.4 and Georgia at 2.3.

The good news is that electric vehicles are getting cheaper. But they’re still running about $10,000 more than the industry average at $56,437, according to Kelley Blue Book.

The folks at Energy say that when you factor in price, maintenance, financing, repairs, possible tax breaks, and gas costs, electric vehicles are more affordable over time. An electric SUV costs $0.4508 per mile, compared to $0.4727 per mile for a similar gas-powered vehicle. Over 200,000 miles, which Car and Driver considers the average life of a vehicle, translates to costs of $94,540 for a gas-powered car and $90,160 for an electric version.

We welcome the weaning of the market from its dependence on fossil fuels. But can the electric vehicle industry keep up? In the short term, supply chain issues could prevent EV makers from meeting demand. Ford announced last week that it would use cheaper but less powerful lithium-ion phosphate batteries for its electric Mustangs and F-150s.

And for now, at least, the batteries will have to be imported from China.

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