Ford Motor Company's (F  ) dealers and Ford Fund have jointly invested $2 million in scholarship funding to combat the ongoing shortage of automotive technicians. The initiative aims to support students pursuing careers as automotive technicians.

What Happened: This initiative, known as the Ford Auto Tech Scholarship, will be rolled out across 10 regions, supporting students in over 20 states and 292 eligible schools. Ford announced on Monday that the scholarship will provide 400 need-based awards to existing or prospective students enrolled in post-secondary auto programs.

The automotive industry is grappling with a significant shortage of technicians, with an estimated requirement of over 400,000 techs by 2027. This scholarship aims to create opportunities for well-paying careers as the industry shifts toward electrification and software integration.

The Ford Auto Tech Scholarship will cover various costs associated with the student's education, including tuition, tools, living expenses, and transportation. The students will also receive support from Ford dealers in each region, providing advice, onsite training, and career guidance.

Why It Matters: This move by Ford comes amidst its plans to increase its electric vehicle (EV) production despite adjusting its F-150 Lightning output. The company is creating nearly 900 new jobs and adding a third crew at its Michigan Assembly Plant to boost the production of popular vehicles, including the Bronco, Bronco Raptor, Ranger, and Ranger Raptor.

According to Ford CEO Jim Farley, the next generation of the company's EV products is expected to be profitable within the first 12 months of their launch. This scholarship initiative is a step towards addressing the shortage of technicians, which is crucial as the automotive industry transitions towards electrification and software integration.