[HN Gopher] Ford to lay off workers as it focuses on electric ve...
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       Ford to lay off workers as it focuses on electric vehicles
        
       Author : sizzle
       Score  : 39 points
       Date   : 2023-06-27 21:34 UTC (1 hours ago)
        
 (HTM) web link (www.cnn.com)
 (TXT) w3m dump (www.cnn.com)
        
       | BugsJustFindMe wrote:
       | They're laying off workers whose skillsets are specific to making
       | vehicles with combustion engines and hiring workers specific to
       | making vehicles with electric motors.
        
         | gonzo41 wrote:
         | It's sad that they don't have some sort of retraining for these
         | people.
        
           | jupp0r wrote:
           | > Ford has previously said it is also hiring in some areas,
           | so it's not clear if these layoffs will result in an overall
           | reduction in Ford's workforce in the United States or Canada.
           | 
           | This might mean that they are eliminating positions, but are
           | possibly filling new ones with the laid off employees where
           | appropriate.
        
           | throwaway894345 wrote:
           | I'm guessing it's mostly people with deep specialization (and
           | interest) in combustion drive trains (e.g., engineers). I
           | don't think it's feasible to take a combustion drive train
           | engineer with a decade of experience and make them reasonably
           | productive as a battery engineer in a short timeframe. No
           | doubt many of those engineers are capable of making the
           | pivot, but most are likely not particularly interested.
        
           | hgs3 wrote:
           | I assume it's cheaper to hire new employees at base pay than
           | pay to retrain the seasoned employees.
        
         | criddell wrote:
         | I wonder how the switch to electric is going to impact Ford
         | dealers? From what I've read they need to (re)train their
         | mechanics and buy a bunch of new equipment and then also deal
         | with the fact that electric vehicles require less maintenance.
        
           | stcroixx wrote:
           | In my circles, dealers would always be the absolute last
           | resort option for having any maintenance done due to their
           | reputation of inflating prices and doing crappy work. Not
           | sure if EV manufacturers are attempting to force consumers to
           | have all their work done by dealers. If so, I'll keep
           | waiting.
        
             | londons_explore wrote:
             | Dealers typically get a monopoly on software fixes/firmware
             | updates.
             | 
             | In EV's, more and more issues will be fixed by
             | reconfiguring/patching software.
             | 
             | I would guess that over time, car software will get more
             | and more locked down - even today, real cryptography is
             | typically used to stop you flashing new firmware onto your
             | ECU. Those checks are only going to get tighter. There are
             | no opensource ECU's.
             | 
             | Therefore, I don't see the dealer going anywhere. But they
             | might get rid of the workshop and replace it with desks of
             | people able to hit buttons on a computer...
        
             | sokoloff wrote:
             | * * *
        
           | burnished wrote:
           | Well, their primary income seems to come from deceiving
           | people, I'm sure they'll either invent new forms of
           | 'maintenance' work or grossly exaggerate the required
           | frequency of some other task.
        
             | statusqueue wrote:
             | The majority of their revenue actually comes from the
             | service department.
        
           | grugagag wrote:
           | Maybe the whole dealership model is to change too?
        
           | esotericimpl wrote:
           | [dead]
        
           | Mizoguchi wrote:
           | Dealers will slowly fade away as online car shopping becomes
           | more common. Volvo for example is aiming at 2030 as the year
           | they turn 100% online. It's reasonable to assume all other
           | car makers will do the same. There's absolutely no reason to
           | buy from a dealer in today's world, that's like when in the
           | 80s and early 90s you needed a middleman to buy a computer.
        
             | ruffrey wrote:
             | How do you test drive a car for an online dealer? Do they
             | drive to your home and let you take it for a spin?
        
               | ohthatsnotright wrote:
               | In your Apple Vision Pro of course.
        
               | TedDoesntTalk wrote:
               | A showroom can exist and not be an independently-owned
               | dealership. In fact such showrooms could stock multiple
               | brands, like any other brick-and-mortar store we
               | frequent.
        
           | m463 wrote:
           | I keep on reading that electric vehicles require less
           | maintenance, but they still require some maintenance, and
           | lots of things continue to break.
           | 
           | how much maintenance does a honda ice car really require?
           | Most of them run flawlessly for years and years, almost
           | without opening the hood at all.
           | 
           | I wonder how the numbers break down?
        
             | pengaru wrote:
             | If Tesla is any indication, they'll be chock full of
             | unnecessary complex gimmicks that will constantly break and
             | need servicing.
             | 
             | I once helped someone with a flat tire in a Model S who had
             | zip ties dangling from every door handle. The "present
             | mechanism" had failed in every door, look it up, it's a
             | known problem of wire fatigue caused by the present
             | mechanism's repetitive movement breaking the door handle.
             | 
             | Imagine owning a Model X at 150,000 miles. I watched kids
             | have to crawl under the rear "gullwing" door of fresh one
             | last month. It refused to open beyond a small gap, despite
             | there being no obstructions. Impatient parent in the
             | driver's seat just shouted in frustration for them to crawl
             | in after throwing his hands up at the steering wheel.
             | 
             | Trash needs lots of maintenance to keep on the road...
             | those things are like Homer Simpson mobiles.
        
               | jefft255 wrote:
               | Looking forward to an electric car that's not a gadget on
               | wheels. Oh well that's probably never going to happen
        
             | jayd16 wrote:
             | Fans, belts, radiator, oil, (ironically) battery, (oil,
             | fuel and intake) filters are eliminated.
             | 
             | Bulbs, tires, alignment, washer fluid, cabin filters, and
             | brake pads remain.
        
               | blcknight wrote:
               | I've owned a few EV's and they all have 12V batteries.
               | The traction battery charges the 12V and it powers all
               | the typical car power systems.
        
               | mulmen wrote:
               | Brake _fluid_ also needs serviced. And EVs still have
               | suspension so you 'll eventually need new shocks. You
               | also have power steering. And Air conditioning, including
               | the condenser. (Some?) EVs also have radiators for heat
               | management of the battery which includes a water pump.
        
             | soperj wrote:
             | You seriously don't change the oil?
        
               | blcknight wrote:
               | There's no oil to change. It doesn't have a combustion
               | engine.
        
               | mulmen wrote:
               | It has a differential and gearbox so it has oil.
        
               | delfinom wrote:
               | I change out my Honda's oil once a year (10k miles per
               | year), so what, $60?
               | 
               | Heh, in my case, I would go bankrupt owning a EV because
               | of tires. My god roads are so fucking bad in NYS that I
               | replaced 3 tires this year alone due to massive gashes in
               | the sidewalls. EVs being so fucking overweight do not
               | have cheap tires, RIP.
        
               | starttoaster wrote:
               | I could be mistaken, but I think they're mostly not
               | counting a procedure that basically amounts to loosening
               | up a bolt that makes oil come out the bottom, tightening
               | it back up again, and then adding new oil from the top
               | side. I think the kind of maintenance they're thinking of
               | is more like "replace the serpentine belt."
        
               | pengaru wrote:
               | Timing belt is a big one for ICEs, valve adjustment if
               | it's something racy.
               | 
               | There's also just so many moving parts there's far more
               | opportunity for engine failures, especially in the face
               | of neglect/deferred maintenance. I don't think there's an
               | EV equivalent for needing an engine rebuild/replace
               | because you ignored the timing belt for too long on an
               | interference motor.
        
               | sokoloff wrote:
               | Many serpentine belts are a sub-10-minute job. Put a
               | wrench on the tensioner, take the tension off it, slip
               | old belt off, put the new belt on, release the wrench
               | tension. It's literally faster than any oil change
               | (engine, diff, or transfer case).
        
             | NikolaNovak wrote:
             | It's weird.
             | 
             | Two decades ago I had a 2004 subaru that needed nothing
             | first years.
             | 
             | Then We got a 2015 Toyota rav 4 and every maintenance there
             | was some up sell. Change a filter check the brakes
             | resurface rotors change the atf or differential oil etc. We
             | actually got into a dispute with dealer after third
             | consecutive $300brakes maintenance.
             | 
             | Thought maybe that was lemon car or bad dealer but now we
             | have a honda odyssey and same thing. My bill last week was
             | $900 for a car that nothing was wrong with, just "regular
             | maintenance".
             | 
             | Due to our schedules my wife usually takes the car in ; I
             | can see the bill is inflated in terms of labour and parts
             | but I already know they'll tell me that's the book value.
             | 
             | So for today's ice cars, they do get a lot of revenue from
             | regular maintenance and may even be more profitable for
             | them than actual fixes.
             | 
             | I wonder about Ev - do they not have brakes, Cv joints,
             | bearings, differentials (I know there's no transmission),
             | et cetera?
        
               | danans wrote:
               | >U wonder about Ev - do they not have brakes, Cv joints,
               | bearings, differentials (I know there's no transmission),
               | et cetera?
               | 
               | They have all those, but at least for brakes, they last
               | much longer due to regen braking.
        
               | mulmen wrote:
               | My brakes are serviced on a time interval. Brake fluid is
               | hydrophilic. You replace it based on age to prevent
               | corrosion of brake components. If brakes are used less
               | and don't get as hot I would expect EV brakes to need
               | more preventative maintenance, not less. Pads and rotors
               | may last longer, but fluid will be the same or worse.
        
           | JimtheCoder wrote:
           | Well, I'm sure all of those massive dealer markups from the
           | pandemic and ensuing vehicle shortage needed to go somewhere,
           | right?
        
           | toomuchtodo wrote:
           | https://electrek.co/2023/01/27/ford-considering-changes-
           | ev-d...
           | 
           | https://cleantechnica.com/2023/03/22/some-ford-dealers-
           | withd...
           | 
           | https://insideevs.com/news/610114/ford-modele-dealership-
           | rul...
        
         | JimtheCoder wrote:
         | Sometimes, I wish headlines would be a bit more specific.
         | 
         | "Workers" to me implies assembly line workers, whereas the
         | actual layoffs are mostly engineers. I have never really heard
         | anyone call engineers, "Workers"...
        
           | wccrawford wrote:
           | "Workers" doesn't even mean non-managers any more... It's
           | just all employees. The word has lost a lot of nuance.
        
           | lolinder wrote:
           | > Google parent to lay off 12,000 workers
           | 
           | https://nypost.com/2023/01/20/google-parent-alphabet-to-
           | lay-...
           | 
           | > Microsoft laid off another 689 workers from its Seattle-
           | area offices Monday
           | 
           | https://www.seattletimes.com/business/microsoft-cuts-
           | another...
           | 
           | > Meta to Lay Off Another 10,000 Workers
           | 
           | https://www.nytimes.com/2023/03/14/technology/meta-
           | facebook-...
        
         | cubefox wrote:
         | The thing is: Combustion motors are amazingly complex and
         | highly optimized beasts, while electric motors are dead simple.
         | There isn't much to improve. So there are not many people
         | working on electric motors.
        
       | scop wrote:
       | I was speaking with the owner of an auto shop a few months back
       | and he made an interesting point I hadn't heard re Ford: whereas
       | Tesla is eating new customers, Ford and other legacy automakers
       | are having to eat their own customers...which can lead to some
       | serious business complexity!
        
         | SamuelAdams wrote:
         | In the business world we call this cannibalizing sales.
         | 
         | https://en.wikipedia.org/wiki/Cannibalization_(marketing)?wp...
        
       | olivermarks wrote:
       | Ford is bleeding to death on purpose so they can get more tax
       | payer EV subsidies
       | 
       | https://youtu.be/5MZeTeqdsTw
        
         | jjtheblunt wrote:
         | Wasn't Ford, unlike GM and Chrysler, NOT a recipient of bailout
         | "too big to fail" federal money?
        
           | abakker wrote:
           | yes, but it was more circumstantial. by lucky happenstance
           | they had arrange a significant loan facility almost directly
           | before the financial crisis. they leveraged this heavily but
           | because the financing had been arranged ahead of time it left
           | them more sound. Ultimately, the other vehicle makers just
           | got loans from the government post-hoc.
        
         | toomuchtodo wrote:
         | I wouldn't say it's on purpose. Ford has always been a marginal
         | (financially) automaker, and while the US gov is providing
         | substantial support (>$10B) via battery and vehicle subsidies,
         | it will be a painful transition based on the financials and
         | balance sheet. Too much financial and institutional debt
         | considering the swiftness at which they must transform. Tesla
         | has a lot of room in their margin (and also generous subsidies
         | due to US component content) to eat price reductions due to
         | rising interest rates, Ford does not while also trying to
         | retool their entire manufacturing supply chain.
         | 
         | TLDR Efficient, nimble innovators can kick the can, laggard
         | incumbents cannot.
        
           | jdsully wrote:
           | Ford Credit (loans to purchasers of their vehicles) is on
           | Ford's balance sheet while the others had to spin off those
           | businesses in '08. So the debt situation is a bit misleading
           | if you just compare the top level numbers to industry peers.
        
             | toomuchtodo wrote:
             | Ford Credit is what sells Ford vehicles, but it's also
             | where the profit is (roughly half of profits). Take away
             | the credit biz, and that's a material impact to both
             | profits and volume.
             | 
             | As the below article notes, it's a balance and pushing risk
             | around.
             | 
             | https://www.detroitnews.com/story/business/autos/ford/2020/
             | 0...
        
               | jemmyw wrote:
               | Does that mean if you buy a vehicle outright all those
               | folks buying on credit are subsidising you?
        
       | gobins wrote:
       | It's interesting that while other companies are doubling down on
       | electric vehicles, Toyota has come out and said the opposite
       | after being one of the first companies to start.
        
         | qqtt wrote:
         | Toyota and Honda are both pushing more into electric cars these
         | days. The main reason they are behind is that the Japanese
         | government pushed hard to develop fuel cell cars and gave out
         | big incentives for companies to put fuel cell vehicles on the
         | road. This big push is why Honda and Toyota both have fuel cell
         | options for customers to use on the road today, but they are
         | both pretty behind on battery electric vehicles.
        
         | bigyikes wrote:
         | Electric cars becoming dominant seems like an inevitability to
         | me, and it looks like many auto makers agree. It's "just" a
         | matter of battery costs, battery density, energy costs, and
         | volume.
         | 
         | What does Toyota see that we're missing?
         | 
         | I ask this as someone who just bought an ICE vehicle, but only
         | because there were no electric vehicles in my market segment.
        
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       (page generated 2023-06-27 23:01 UTC)