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Ford CEO Farley Says EVs Only Small Part Of Ongoing Transition

Ford is investing heavily in all-electric vehicles, to the tune of $50 billion as it aims to produce two million units annually by 2026. At the same time, FoMoCo sees the EV transition happening faster than expected, with major movement coming as soon as next year. However, the automaker continues to build and sell ICE-powered vehicles under its Ford Blue division, and is also in the midst of a major connected vehicle services push that it says will generate $20 billion in annual revenue by 2030. Thus, perhaps it’s no surprise to learn that Ford CEO Jim Farley recently stated that EVs are only a small part of the automaker’s ongoing transition.

“I think I would just emphasize that how we look at this change in our industry is it’s not a change of propulsion. It’s much bigger than that. It’s a change to a vehicle whose differentiation will increasingly be software that you ship to the vehicle,” the Ford CEO said while speaking on the automaker’s Q2 earnings call. “We now have real experience on the first shipable software to these cars. The first is ADAS for sure, and the second one for us is Ford Pro. We’re shipping telematics to the customer, driver coaching, energy management, our attach rate for charging now on our E-Transits where we’re 95 percent share is like 30-plus percent. So, there are a lot of services connected to these vehicles because of the software. And that’s a really big revenue opportunity for us.”

Following the launch of the new Blue Oval Intelligence connected vehicle platform, owners – particularly those that drive the Ford Mustang Mach-E – have been gravitating toward over-the-air updates, while FordPass and Lincoln Way memberships have also exploded in recent years.

Meanwhile, Ford’s hands-free highway driving feature – BlueCruise – has seen its installation numbers rise dramatically over the past few months, as well as the number of fleets taking advantage of its Ford Pro ADAS subscription services. However, in addition to generating revenue from these features, Ford also hopes to use them to reduce marketing costs, and not all of these services will cost money, either.

We’ll have more on Ford’s connected vehicle services soon, so be sure and subscribe to Ford Authority for comprehensive 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. JDE

    What? No mention of Ford laying off 3,000 white collar jobs to pay for EV expansion?

    Reply
    1. The Gentle Grizzly

      Maybe, just maybe, because that is not the subject of the article.

      Reply
  2. LANCE CLOUSER

    Not at all impressed with the past 2 CEO persons at all.

    Reply
  3. Bob Dobson

    I find all the comments by Farley about Ford moving into Connected Services so ironic. This is the company that produced My Ford Touch (aka My Ford Disappointment), SYNC3 and SYNC4.

    They delivered a all new Ford Explorer for 2020 and still the 2023 model year Explorer is being delivered with SYNC3 a software platform well known as the worst functionality in the automotive industry.

    Hey Jim how about solving your existing customer frustration with existing products before venturing off into an area your people execute very poorly.

    Reply
    1. Falcon

      I agree Bob. I just took my 2021 Edge in to the service dept. at my Ford dealership for a non- functioning info screen (fifth time this has happened. Remedy is to disconnect the positive battery terminal and reload the system) brought to you by SYNC 4. Mr. Farley, in my opinion, will bring Ford as a whole to its financial knees. After manufacturing drivetrains for 108 years, the company still produces engines like the 3 valve Triton that becomes a boat anchor after 100k miles, and the Eco-Junks with their terrible head gasket/ engine block issues …. which gets repaired with a new long block; not cheap! They need to get Quality under control PLUS develope new technology in EV’s? Good luck Ford.

      Reply
  4. Shane

    Farley is covering his butt because he’s learning the hard way that Americans don’t want EVs, and he can’t force people to buy them. He’s soaked Billions into EVs and killed Ford’s financials. Ford owners are now boycotting Ford over his EV push.

    Reply
  5. Ronald

    Mr. Farley seems to be the only one pushing software. I see nothing in advertising or dealer show rooms about it.

    Reply
  6. Bob

    Jimmy wants to know your every move so he can market you with such precision you won’t even know it’s happening. Everything else is secondary.

    Reply
  7. Julius Rosen

    I live in Florida and no way I’m going to pay five bucks a month for heated seats. That said if they come out with much improved software as an example for a super cruising and they can apply it for a few extra bucks a month in the future I’ll be willing to pay but I’m not going to pay for something like remote start that’s already on the car after three or four years. I think that’s downright Fraud .

    Reply
  8. Julius Rosen

    First you have to have cars on a lot to sell. Then maybe you have to bring ev prices down. Then you have to give them more than 200 mi range. What the executives don’t understand is that the cost of opportunity is way too high for 90% of the population and then used EVs with only two or three years left of battery life are not something most people are going to buy even if they’re half the price . The last thing they’re going to have to crack is how to replace batteries at very reasonable prices. What I mean is under 5 or $10,000, more like 1 to 2,000 to get a totally new battery. And I really don’t see it happening unless they come up with totally new battery chemicals and philosophies maybe like leasing a new battery for $200 a year.

    Reply

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