Ford Plans Affordable EV Models and Promises Profitability
Ford hasn’t had the best luck with profitability on its electric vehicle business, but the automaker is not shying away from aiming at the cheaper end of the EV spectrum. CEO Jim Farley recently confirmed that the company would purse sub-$30,000 electric models with its next-generation product line, and said that its existing models would become better in the meantime.
Farley noted that company executives are aware of buyers’ desire for more affordable EVs, noting Ford’s recent price cuts on the Mustang Mach-E, which gave the SUV a striking sales bump. The automaker’s hybrid models are quite popular, however, driven to a large degree by its expansive fleet business.
Ford’s gas-vehicle business, particularly its trucks, continues to generate strong revenues, giving it an advantage over electric-only automakers like Tesla, which has reportedly wavered in its desire to create an affordable electric car. Despite its struggles with EV profitability, the company feels confident that its lower-cost models won’t push it further into the red, as Farley expressed his belief that Ford would figure things out in the next few years.
CEO optimism is nothing new, as it’s often the only thing propping up companies’ stock prices. Tesla CEO Elon Musk recently announced a robotaxi program that will debut in August but also noted that the company would focus on accelerating more affordable model development. At the same time, it’s unclear how Ford plans to reach profitability with cheaper vehicles, as it’s slowed investments in new factories and other related areas.
[Image: Ford]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
More by Chris Teague
Comments
Join the conversation
I'd like to believe, I want to believe, having had good FoMoCo vehicles - my aunt's old 1956 Fairlane, 1963 Falcon, 1968 Montego - but if Jim Farley is saying it, I can't believe it. It's been said that he goes with whatever the last person he talked to suggested. That's not the kind of guy you want running a $180 billion dollar company.
Go hybrid and wait for Toyota to finish its hydrogen engine and generator/separator.