Topic updates
Electric Vehicles - Ford Commits to Insourcing
16th November 2022
Wow! What a superb article for your A-level and IB economics. The CEO of Ford is quoted as saying that manufacturing electric vehicles will require 40% less labour – mainly because there are far fewer component parts involved in contrast to the internal combustion engine.
He is committed to driving vertical integration at Ford – giving the business greater control over the supply chain. Ownership of or joint ventures with battery producers will be crucial to sustaining employment within the business. Hence the reference to insourcing!
What is insourcing?
Insourcing is the practice of using an organisation's own personnel or other resources to accomplish a task that was previously outsourced.
Ford chief warns electric vehicles require 40% less labour https://t.co/kfD6CbbpWu
— Financial Times (@FinancialTimes) November 15, 2022
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- Forward Vertical Integration
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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