Ford CEO says factory jobs "at risk" if Trump repeals EV credits
With nearly 13,000 jobs and billions of dollars on the line, Ford’s CEO warned that cuts to EV incentives could have significant consequences.
Ford CEO Jim Farley is sounding the alarm over potential job losses if President Donald Trump follows through on plans to repeal electric vehicle (EV) tax credits. Speaking at the Wolfe Research Auto, Auto Tech and Semiconductor Conference, Farley emphasized that cutting these incentives could put thousands of U.S. manufacturing jobs at risk, The Detroit News reported.
Related: Toyota revives the Celica with high-performance GR badge
Billions already invested in EV production
Ford has committed significant resources to expanding EV production, including the construction of four battery plants in Michigan, Kentucky, and Tennessee. These projects, developed with a joint venture partner, South Korea-based SK On Ltd., represent billions in investment and are expected to create nearly 13,000 jobs.
Farley warned that rolling back Inflation Reduction Act (IRA) provisions that subsidize EV battery manufacturing could force Ford to scale back or even cut jobs. "We've already sunk capital—even though we've rationalized it—in battery production and assembly plants all through Ohio, Michigan, Kentucky, and Tennessee," Farley said. "And many of those jobs will be at risk if the IRA is repealed."
Related: 2025 Toyota Supra vs BMW Z4: affordable thrills or visceral luxury?
How EV tax credits affect Ford’s strategy
The IRA, signed into law by President Joe Biden in 2022, provides up to $7,500 in tax credits for EV buyers and includes subsidies for U.S.-based battery production. The latter provision is particularly crucial for automakers like Ford, which depend on these credits to offset high manufacturing costs. Battery cells alone are eligible for a $35 per kilowatt-hour credit, reducing overall production expenses and allowing Ford to develop more affordable EV models. Ford
Farley said these subsidies are essential for the future of EV adoption, especially in the lower-cost segment.
"There is a very underserved group of people where actually running an EV is cheaper than an internal combustion engine product," he said. "But these very large EVs that cost $50,000, $60,000, $70,000—we don't believe that’s the future."
Related: Farewell to the stick shift: these cars lost their manual transmissions in 2025
Trump’s policy shift and its potential impact
On his first day back in office, Trump signed an executive order directing federal agencies to review and potentially repeal incentives favoring EVs. He also paused funding for the national EV charging network, a move that is already facing legal challenges.
Ford’s financial outlook has already been strained by high EV production costs, with its Model e EV division expected to lose up to $5.5 billion in 2025. The loss of tax credits would further complicate Ford’s ability to make EVs profitable. Chief Financial Officer Sherry House warned that changes to the program would be "very material" to Ford’s bottom line.
Related: Tesla Model Y vs Hyundai Ioniq 5: Which is better?
Tariffs and trade uncertainty add more challenges
Farley also expressed concern over Trump’s recent tariff policies, including a 25% duty on aluminum and steel. Although Ford sources 90% of these materials domestically, suppliers with international ties could still drive costs up. Ford
"There's a lot of policy uncertainty here," Farley said, pointing to potential disruptions in supply chains and production. "But in the meantime, we're scrambling to manage the company as professionals, and we're in a global race."
Final thoughts
Despite these concerns, Ford remains committed to its EV transition, though the pace may slow. Industry analysts suggest that while Ford is unlikely to abandon its EV projects entirely, it may delay investments or cut back production if tax credits disappear.
While Trump has positioned himself as a champion of American manufacturing, Farley warned that reversing EV policies could do more harm than good. "President Trump has talked a lot about making our U.S. auto industry stronger," he said. "If this administration can achieve that, it would be one of the most signature accomplishments so far."
Love reading Autoblog? Sign up for our weekly newsletter to get exclusive articles, insider insights, and the latest updates delivered right to your inbox. Click here to sign up now!
