Ford Electric Vehicle Push Results In 1,000 Layoffs, $3 Billion In Losses After Multi-Billion Loan From Biden Admin

New reports from Ford Motor Company have revealed that the American automaker has plans to lay off a minimum of 1,000 salaried employees as it projects losses of approximately $3 billion in order to launch its electric vehicle (EV) division later this year.

According to reports from The Wall Street Journal, the cuts were announced internally on Monday, with a company spokesman confirming the cuts in North America the following day. The outlet reported that "people familiar with the matter" said the move is "the automaker’s latest effort to defray the heavy cost of investing in electric cars."

The outlet also reported that the Biden Energy Department promised last week to loan a joint venture between Ford and South Korean firm SK On $9.2 billion from taxpayers to support the fabrication of EV batteries at three factories across the U.S. The two separate developments reveal that astonishingly, despite direct subsidy from the American taxpayer, Ford still can't start up EV production without sustaining significant financial losses and costing Americans jobs.

Steve Milloy, formerly of the Trump EPA transition team, founder of JunkScience.com, and a Director of The Heartland Institute, commented in a tweet, "Ford lost $34,000 on every EV sold in 2022. Now the losses are resulting in mass layoffs. EVs and the taxpayer-subsidized industrial policy that mandates them is an unmitigated disaster."

.@Ford lost $34,000 on every EV sold in 2022.

Now the losses are resulting in mass layoffs.

EVs and the taxpayer-subsidized industrial policy that mandates them is an unmitigated disaster. @pwrhungry https://t.co/VlxK2OsHnI

— Steve Milloy (@JunkScience) June 27, 2023

On Thursday, the WSJ Editorial Board wrote "At Ford, Government Is Now Job One," in which it asserted, "Ford isn’t in financial danger now, but its EV investments are squeezing profits and forcing layoffs. The auto maker last year lost $3 billion on EV sales. In the first three months of this year, its EVs posted a negative 102% operating margin, meaning losses exceeded sales revenue."

The board concluded, "Ford’s sweetheart loan follows National Security Adviser Jake Sullivan’s recent vow to 'unapologetically pursue our industrial strategy at home.' The climate agenda has turned the once great American auto industry into a too-willing prisoner of government."

Regardless of reports indicating potential layoffs, leading U.S. car manufacturer Ford (F) was issued a $9.2 billion conditional loan by the U.S. Department of Energy's Loan Programs Office. This loan is the largest government backing for a U.S. automaker since 2008. "As you can… pic.twitter.com/V3crahw7FF

— Stansberry Research (@Stansberry) June 25, 2023

Stansberry Research observed, "Regardless of reports indicating potential layoffs, leading U.S. car manufacturer Ford (F) was issued a $9.2 billion conditional loan by the U.S. Department of Energy's Loan Programs Office. This loan is the largest government backing for a U.S. automaker since 2008. "As you can see, Ford has a clear level of support, around $11 per share. If shares hold up here, the recent action could mark an important bottom for the stock – and possibly the beginning of its next leg higher," says @MatthewMcCall."

The report appears to confirm that Ford is effectively propped up by the Biden administration at this point and has been tasked with producing electric vehicles at any cost.