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Ford CEO Jim Farley Says EV Pivot Will Spur Industry Wide Consolidation

Ford is investing heavily in all-electric vehicles and battery technology, but it certainly isn’t alone in that regard, as many of its rivals are doing exactly the same thing as each aims to win in this relatively new segment. However, Ford CEO Jim Farley doesn’t believe that every automaker will emerge from this major transition intact, and feels as if quite a bit of industry wide consolidation is coming as a result, as he revealed while speaking at the recent 2022 Alliance Bernstein Strategic Decisions Conference.

“The old OEMs absolutely will get consolidated,” Farley said. “There’ll be some big winners. Some people that transition, some won’t. Many of the small players cannot afford to make this transition. Many of them are not investing in embedded software and electric architectures, which is the heart of this transition. It’s not motors and gearbox, it’s gateway modules and software that controls the vehicle.”

With automakers like Ford, General Motors, Honda, Toyota, and many others investing billions in EVs and related technology, it will certainly be interesting to see how things pan out once the dust settles and more competitive all-electric models have flooded the market. Other legacy automakers resisting the switch could be left behind, as Jim Farley notes here, while upstart automakers like Rivian and Lucid Motors face a bit of an uphill battle as well.

Farley previously said that he sees Tesla, Rivian, and Volkswagen as major threats to the automaker’s EV business, in spite of its partnership with VW and the fact that it still owns a major stake in Rivian. However, the latter has struggled to produce vehicles amid supply chain constraints and legal woes, and Ford recently sold 15 million shares of its Rivian stock in two waves as its stock price continues to tumble.

We’ll have more on the future of the automotive industry soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. David Dickinson

    Prediction: Farley will be long gone before EV adoption actually happens.

    Reply
    1. COBRA THERAPY!!!

      Yea this guy is out of contact with reality!!A dam FOOL to be exact.

      Reply
    2. Everyday Patriot

      Okay!
      No one knows more than you do!

      Reply
      1. LWAP

        What a great comeback! “I know you are but what am I.”

        What are we, in 4th grade?

        Reply
  2. Joe

    So battery packs keep getting more expensive, average payment of a Mach E is $829, and the people buying them have excellent credit, electricity is going up as well as fuel, the wires on the telephone poles can’t handle much more demand, they are very old and made when most homes had 60 amp service. Tell me the number of people that can afford them in Mexico, South America, Africa, Poland, Moldava, Romania, Russia, and all the third world countries? Wait till the 2023 model price increases to hit on EVs.

    Reply
  3. NCEcoBoost

    This idiot still thinks we’re all going to be EV pivoting. Uh huh.

    Reply
    1. Smokin Paul

      Translation: the weak will die, only the strong will survive. 😆

      Reply
  4. Mike

    Sounds like Farley is opening Ford up to be taken over, by Tesla?

    Reply
    1. David Dickinson

      Actually, I think you may be on to something. I’ve found Farley’s moves baffling but, in light of your comment, they make more sense.

      Reply
      1. David Dickinson

        PS My mind is racing at the idea. But here is some evidence… 1) Lightning is getting Tesla adapters as reported by this site; 2) Farley’s surprising comments above as you mentioned that, “The old OEMs absolutely will get consolidated,”; 3) What happened to Tesla’s cybertruck? It disappeared because they will go with Ford’s EV truck offerings (face it, nobody beats Ford at trucks); 4) The Ford ICE/EV split; 5) Farley socializing the idea that Ford will go to a fixed price model like Tesla…because that is where Ford is going.

        It may be a conspiracy theory, but it is a DARN GOOD CONSPIRACY THEORY!

        Reply
        1. David Dickinson

          PPS To FordAuthority. Request a post on this Tesla-Ford possibility and let the comments fly!

          Reply
    2. Smokin Paul

      Why would Tesla want anything Ford has. 😄 It’d be like the Borg assimilating a stone age population. LOL

      Reply
  5. CWJ

    If i was president of FORD….my first JOB 1 .would be Quality….something that had gone away….notice all the recalls…..unreal….new cars going back to garage more than the old ones….Spending on Quality Control…will have a better payback than anything Ford can do…Examples….Driveshaft recall Ford Transits….Water Pump inside the timing cover of 2013 Ford Explorers and some other front wheel drive vechicles….with V6 engines…awful design…not rocket science…

    Reply
    1. Smokin Paul

      Agreed.
      Although my self accelerating Ford Focus I inherited was a real adrenaline rush. 😳😲

      Reply
  6. Steve Ketterer

    As soon as idiot Brandon is booted from office, most of this nonsense will disappear.

    EV enthusiasm is mostly fabricated by the propaganda media.

    Yeah, I know–reality again.

    Reply
    1. troverman

      While I agree on Brandon, unfortunately this is not going away. The beginnings of the EV trend began with seriousness under Obama, and most thought it would fade away under Trump. Trump even removed us from the Paris Climate treaty, and lessened EPA fuel economy targets. The problem was that the auto industry predicted Hillary would be elected in 2016 and continue what Obama was pushing, so they invested considerably into EV development. These things were already baking in the oven when Trump was elected, and the automakers wanted a return on their investment, so they continued. Now, they have invested billions upon billions and have models in production. It won’t be going away. Frankly, I’m fine with EVs if they are good enough to sell on their own merits as being equal or better than ICE models. Unfortunately, they are not. Saving the planet has nothing to do with EVs, either…its about making certain people richer.

      Reply
      1. Steve Ketterer

        I agree with everything you said. My problem is with your opinion [which I also agree with] that EVs aren’t on par with ICE vehicles. That’s going to be a major problem going forward.

        Then there’s the infrastructure problem nobody’s talking about.

        Reply
    2. Smokin Paul

      Agreed dimension Joe has to go!

      The disruptive technology of EVs is following the classic S-curve adoption and will replace ICE cars in less than a decade. Same as the ICE car replaced horses. Govt has nothing to do with it. Except Govt interference trying to force EV adoption has only driven the prices of all cars up. 😡

      Now Govt is driving up the price of everything, or more correctly making our dollars worthless. 😡

      Reply
  7. Kenny D

    My 2 CENT’s…. Mr. Farley, PULL Your Head Outta your Posterior and start doing what you said MONTH’S Ago!!! Concentrate On F O R D’ S Quality Issues. As Mentioned above, What IDIOT would decide to Put a “WATER PUMP” inside of the Timing Cover Directly Over the Front of the OIL PAN, so that when it Starts LEAKING, Coolant is DUMPED INTO THE OIL PAN???? And If Not Corrected Immediately will “DESTROY THE COMPLETE ENGINE”??? Costing Someone Thousand’s of Dollars??? Who Does that???? Steps Back, and Say’s to all the “ENGINEERS” in the Room. “L O O K” we Nailed it….. Thats Perfect, Send it out to Production??? Who In their RIGHT MIND WOULD DO THAT????? Let Alone ALL the Other Issues F O R D has Installed in there BUILD’S…. Unbelievable…… Another Beautiful Design…… WHO PULLS THE COMPLETE CAB OFF A FRAME TO DO CERTAIN SERVICING???? Ya…. F O R D D O E S??? Yet Another Chance to cause More Nightmares down the road!!! COMMON JIMMY. Get it together or Get the Hell Out!!! POOR HENRY FORD…. If he could only See Today the Company that he Built Years Ago. Would it be Better??? I think So…

    Reply
  8. Steve

    Wow, I think ol’ Jimbo here has been some where that marijuana stuff is legal in public. This guy is way out there OR he’s bidding his way into the Biden Administration. Either way, he’s smoking something if he thinks an EV pivot is happening. NO ONE and I mean NO ONE is going to spend 50 plus thousand dollars to buy some POS EV and pay the interest rates . Jimbo, you have lost touch with reality. Okay Jimbo, I’ll help you out. Fact, economy sucks. Interests rates at a 40 year high. Recession IS going to happen after a second loss in GDP happens in Q2. Biden administration is going to do NOTHING to make it slow down, if fact they want to make things worse. (Thank you to all that voted for this idiot, Biden). My question to you Jimbo, what is Ford going to do to help out the those that are being hurt by the Biden Administration? Oh I know, have them spend thousands of dollars buying an EV. Wow Jim, button up your shirt, your heart is falling out.

    Reply
  9. D.M.

    Could he stop making dumb decisions and start making my bronco. Been waiting for two years now.

    Reply
  10. jimi tjong

    Ford not listening to great idea people. My organication making good results. We make new water battery that run on water. very good very clean. I design but only phd engineers build. super cheaper quality battery.

    Reply
  11. hot toddy

    always love they way he refers to Ford’s order banks being open, but not a word on just how many of those ordered units actually arrive as promised

    Reply

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