Ford plans to produce its own EV components to consolidate supply chain

In an effort to decrease future supply constraints and supplier short falls, Ford wants to bring component production in-house as EV market heats up.

Ford plans to produce its own EV components to consolidate supply chain
1 minute & 33 seconds read time

Much like its competition, US automaker Ford has fought through supply chain issues and semiconductor shortages while producing electric vehicles.

Ford plans to produce its own EV components to consolidate supply chain 09

Ford currently purchases its motors and EV batteries but wants to transition those procedures in-house. The company started construction on a battery facility in Kentucky, with the automaker putting together pieces of the puzzle. If done well, this should help reduce costs and streamline manufacturing at its facilities.

During a 2022 Q3 earnings call, Ford CEO Jim Farley had this to say:

"Clearly, we need to continue to improve our competitiveness, not just on quality, but on cost and supply chain management."

"I can't overstate the sense of urgency we have to address these critical operating areas. I look forward to updating you on future calls."

To do this, Farley said people should expect Ford to go "back to our Model A," when the company did everything on its own: "We're going back to where we were at the beginning of the century. Why? Because that's where the value creation is. It's a huge transformation."

Ford has done well for itself in the current US EV sales, currently the #2 EV brand behind, trailing behind Tesla. Through Q3 2022, Ford has sold 31,144 units of the Mustang Mach-E, 11,196 units of the F-150 Lightning, and 5,157 units of its E-Transit vans.

To help with the development of its next three EV models, Ford will work with Rockwell Automation to ensure on-time successful builds.

Making sure management and workers are on the same page when it comes to production changes can be daunting. General Motors, an American rival to Ford, admitted there is an adjustment period in efforts to deploy increased EV production.

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An experienced tech journalist and marketing specialist, Michael joins TweakTown to cover everything from cars & electric vehicles to solar and green energy topics. A former Staff Writer at DailyTech, Michael is now the Cars & Electric Vehicles News Reporter and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog,, while he looks to remain busy in the tech world.

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