Abdelrahman
Ford Motor Company may face employee layoffs if the Trump administration decides to eliminate subsidies and financial aid for electric vehicle production, according to insights shared by CEO Jim Farley on Tuesday.
During a conference in New York, Farley highlighted Ford’s significant investments in manufacturing facilities for batteries and electric vehicles across states like Ohio, Michigan, Kentucky, and Tennessee. He warned that if Republican lawmakers were to revoke the Biden-era legislation that provided billions in funding for these initiatives, “many of those jobs will be at risk.”
Farley also expressed strong disapproval of President Trump’s threats to impose tariffs on vehicles and parts imported from Mexico and Canada. Ford manufactures several models in Mexico, including the Maverick pickup truck and the Mustang Mach-E electric SUV, as well as engines in Canada.
“A 25 percent tariff across the Mexico and Canadian border would severely impact the U.S. automotive industry in ways we have never encountered before,” Farley stated, as quoted from a transcript released by the company. He noted that such tariffs would disadvantage the U.S. market, allowing South Korean, Japanese, and European manufacturers to import one and a half to two million cars into the U.S. without facing similar tariffs.
Farley’s comments at the Wolfe Research conference offered an uncommon perspective from a business leader challenging Trump’s directives. Typically, executives maintain a neutral stance or commend the administration, possibly out of concern for potential backlash.
While Farley did criticize specific policies, he acknowledged Trump’s efforts to strengthen the U.S. automotive sector and to promote domestic production and innovation. This is particularly pertinent now, he suggested, as the global automotive landscape faces fierce competition, especially with the expansion of Chinese manufacturers overseas.
“If this administration succeeds, it would rank among its most significant achievements,” Farley noted. However, he cautioned, “What we’re witnessing thus far is an increase in costs and significant disarray.”
Additionally, Farley’s remarks underscore a political challenge for Republicans who aim to undo Democratic initiatives that support electric vehicle adoption. Much of the investment in manufacturing has flowed into states and congressional districts represented by Republican lawmakers, putting jobs at risk for their constituents.
