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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. 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
  2. Mike

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

    Reply
    1. Smokin Paul

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

      Reply
  3. 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
  4. 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
  5. D.M.

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

    Reply
  6. 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
  7. 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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