Another case of what I call The Klarna Effect.
Hedgie (@HedgieMarkets)
🦔Ford admitted it had to rehire engineers after replacing them with AI systems that couldn't do the job. The company's VP of hardware engineering said they mistakenly believed AI and adjusted design requirements would produce a high-quality product. Ford has cut over 5,000 workers since 2020 and recalled more cars than any other US automaker this year. The company rehired, newly hired, or promoted 350 experienced engineers to fix the damage. CEO Jim Farley has said AI will replace half of all white-collar workers in the US.
My Take
Ford fired the engineers, the quality collapsed, and then Ford called the engineers back to fix what broke and train the AI that was supposed to replace them. The VP framed this as a lesson learned. I'd call it something else. Ford planned to use its own employees to build the system that would make them obsolete. The employees left before that could happen.
Ford now has the top spot in JD Power's quality ranking for the first time in nearly 20 years, but only after it brought the humans back. The company's response to the whole episode is to add 100,000 more AI-powered tests. Farley still says AI will replace half of white-collar workers. Ford just proved it can't replace 350 engineers without the product falling apart, and the CEO's position hasn't changed. That's the part I can't get past.
Hedgie🤗
— https://nitter.net/HedgieMarkets/status/2070937332161597623#m