Ford chief says Americans need to fall ‘back in love’ with smaller cars
What strategy does Ford plan for EV production profitability?
Ford plans to focus on smaller, more affordable EVs and commercial vehicles, as well as scaling production and rolling out more new EV models. The company aims to introduce a $30,000 all-electric vehicle that will be profitable in roughly two and a half years. Ford also intends to invest in battery cell manufacturing and energy-efficient designs to reduce battery size and cost, targeting a positive EBIT margin of 8% for its EV business by the end of 2026.
Why does Ford's CEO advocate for smaller cars in the US?
Ford's CEO, Jim Farley, advocates for smaller cars in the US due to their lower weight and the potential for increased affordability and profitability in the electric vehicle market. He acknowledges that Americans love larger vehicles, but emphasizes the need to transition to smaller cars for better EV adoption and societal benefits.
What did Jim Farley say about the weight of American vehicles?
Jim Farley, Ford's CEO, expressed concern about the increasing weight of American vehicles, which has reached an average of 4,329lbs (2,000kg) in 2022, up from 3,300lbs (1,500kg) in 1980. He emphasized the need for the auto industry to focus on smaller EVs and commercial vehicles, as the heavy batteries in larger EVs make them less profitable and less affordable for consumers. Farley called on American consumers to "get back in love" with smaller vehicles for the sake of society and EV adoption.