The race to electrification is well and truly underway and, in Detroit, all kinds of steps are being taken to adapt. Ford Motor Co. (NYSE: F) confirmed on Monday 22 August 2022 that it’s laying off thousands of white collar and contract employees as part of a plan to trim costs ahead of a long-term transition to electric vehicles. Chief Executive Jim Farley has recently stated that Ford has too many employees and that the existing workforce doesn’t have the expertise needed to transition to electric. Farley, who is also president of Ford’s electric division, plans to cut $3 billion in annual costs by 2026 as part of this plan.
Meanwhile, Dodge has announced it’ll discontinue its iconic gas-powered Challenger and Charger muscle cars at the end of 2023 in favour of the Electric Vehicle (EV) transition. In recent years, while brands have been switching to more fuel efficient and hybrid models, Dodge rolled out ‘the most powerful SUV ever’ and other mega-polluters which have helped lead Stellantis’ (NYSE: STLA) to buying millions of dollars’ worth of carbon credits in recent years. However, the time of the gas-guzzling giants appears to be coming to a close, as many companies move to bridge the EV sales gap with Tesla (NASDAQ: TSLA).
Dodge appears to be taking measures to retain the loyalty of fans as the EV transition picks up pace. Last week, the company unveiled a new concept car called the Charger Daytona SRT – a preview of its first all-electric muscle car expected in 2024. As the roar of a V-8 engine and the shifting of gears is such a critical component to many muscle car fanatics, Dodge has developed an electric exhaust system and multi-speed transmission to mimic this experience. These aspects are expected to negatively impact the driving range of the vehicle but CEO Tim Kuniskis had this to say: ‘Don’t care; it’s badass… it’s a muscle car.’