Ford Motor (F) is reportedly gearing up for a new round of layoffs, just as the automaker secured a major loan from the U.S. government to produce batteries — two developments that should accelerate the Club holding’s efforts to become a top player in the electric-vehicle market. As CEO Jim Farley continues to rein in costs, Ford is preparing to enact a new round of layoffs in the coming weeks, according to a Wall Street Journal report Thursday. The cuts are expected to target salaried workers at Ford’s gas-engine, electric-vehicle and software divisions, the Journal story said, citing people familiar with the matter. Last August, Ford eliminated 3,000 jobs . Meanwhile, the U.S. Energy Department on Thursday announced plans to loan a record $9.2 billion to a joint venture of Ford and South Korean battery maker SK On — Blue Oval SK — to finance the development of three new battery manufacturing plants. The unprecedented low-interest loan will allow for more than 120 gigawatt hours of battery production in the U.S., helping Ford to ramp up manufacturing of EVs. Despite the positive developments, Ford shares were down more than 1% Friday, at roughly $14 apiece. That’s a mistake,” Jim Cramer said. “I feel strongly that Ford is a very good stock.” The stock has rallied more than 20% since the start of the year, as Farley proved to investors he had righted the ship in the first quarter. Nonetheless, news of the potential layoffs come after Farley told Jim this week that Ford still needs bring down costs at its EV division. The company has estimated its EV costs are roughly $7 billion higher than its competitors. Ford is targeting the production of 2 million EVs by 2026. F 1M mountain Ford stock performance month-to-date. The Club’s take We’re pleased to see that Ford is on the right track to reaching it’s EV goals, while enhancing profitability. The automaker had a rough patch in its initial push into the EV space, but the company under Farley is taking decisive steps towards an electrified future and to be a major player globally. We’re impressed Ford is streamlining its internal-combustion engine business, which unfortunately comes at the expense of letting some people go. The reported decision shows that the company is focused on efficiency and keeping costs down, while it transitions away from gas engines to EVs. And the historic loan from the government will help further expedite that transition, with demand expected to be high for Ford’s EVs in the U.S. (Jim Cramer’s Charitable Trust is long F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Ford Motor Co., CEO Jim Farley gives the thumbs up sign before announcing Ford Motor will partner with Chinese-based, Amperex Technology, to build an all-electric vehicle battery plant in Marshall, Michigan, during a press conference in Romulus, Michigan February 13, 2023.
Rebecca Cook | Reuters
Ford Motor (F) is reportedly gearing up for a new round of layoffs, just as the automaker secured a major loan from the U.S. government to produce batteries — two developments that should accelerate the Club holding’s efforts to become a top player in the electric-vehicle market.
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