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Ford Exec Says EV Price Premium Won’t Halt Growth

It’s no secret that new vehicle prices have soared in recent years amid production issues caused by various supply chain shortages and rapid inflation. All-electric vehicles haven’t been immune to this trend either, as most automakers that produce them – Ford included – have imposed some pretty hefty price increases on those models over the past few months to reflect skyrocketing materials costs. However, Doug Field, Chief Advanced Product Development and Technology Officer, Ford Model e, revealed that these EV price premiums aren’t expected to halt growth one bit.

“Well, there’s cost. But even with a premium, Tesla has demonstrated that EVs offer enough advantages to customers, not just in efficiency, not just in environmental friendliness, but in acceleration, in packaging,” Field said while speaking during a recent fireside chat with AllianceBernstein. “People just love EVs, and so people will pay a premium for that, and there’s a lot of growth still in the EV industry even before costs decline and become equivalent to ICE vehicles.”

With the EV transition occurring a bit faster than expected, many were worried that these already-expensive vehicles would become a bit less desirable following hefty price increases, but demand remains as high as ever. That’s true of models like the Ford F-150 Lightning, which is still turning in just eight days on dealer lots, even after the EV pickup received hefty price increases on top of big markups.

Additionally, Ford Mustang Mach-E dealer inventory is turning in 10 days and gaining market share, even after the EV crossover has gotten far more expensive in recent months. The third and final EV in Ford’s current lineup – the E-Transit – also dominates its segment in terms of sales, and has done so since the day it launched earlier this year. All of this bodes well for Ford as it develops its second-generation all-electric vehicle lineup, which is expected to be far more profitable than this trio of models.

We’ll have more on Ford’s EV push soon, so be sure and subscribe to Ford Authority for 24/7 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 II

    There is a sliver of society where the price of the vehicle doesn’t matter. But, for widespread EV adoption, price is very important and no business can seriously think they can raise prices with impunity. At a certain point, the affluent urban population will be saturated with EVs. The automotive world seems to be betting that, by the time that happens, the infrastructure and desire for EVs will have spread across a broader audience.

    Reply
    1. Ford Owner

      You miss the point about maintenance and TCO (total cost of ownership). Buying an EV is a higher inicial cost but after ten years of ownership, the EV saves many thousands of dollars in maintenance and energy cost. So only buyers who thinks small and in short terms considers an EV too expensive. And they buy cheaper gas cars. They will be the losers.

      Reply
      1. Ford Owner

        I forgot to mention about infrastructure. Everyone has a charging station in their homes or garages. It is called an electrical outlet. So who has a gasoline station in their home? No one!

        Reply
        1. Will

          A 110 outlet is not going to recharge a EV over night. Not everyone owns a home, has a garage, can park off the street, condos, apartments, older multiple family homes. Many people are left out of the process, by high costs, vehicles to small, to expensive.

          Reply
          1. JDE

            Also not everyone has a 50 or 60 Amp available space in their Circuit box. I can as easily or probably cheaper install a 50Gallon fuel tank on a base that can be filled regular like home heating oil. I mean this is the norm on farms to be honest.

            Reply
      2. Bill

        How many of these lucky rich folks keep their EV 10 years to make up the cost difference? Folks in rural regions such as the UP of Michigan have additional challenges that big city folks dont have. Forcing such a change before the grid can handle high demands and station don’t face $1000 a month extra for demand charges is needed.

        Reply
        1. RWFA

          Your points aren’t clear, please elaborate on:
          – special UP conditions,
          – why you don’t think the power companies will be up to the task of managing their business,
          – who are station, what is 1000$/mo demand charge?

          Are any of these real?

          Reply
          1. JDE

            I can tell you from Missouri the Power company has already told us when we implemented a $180,000 infrastrure upgrade to install just 6 level 2 chargers, they are not sure what the people are going to do that have waited. they only have so much transmission capability. I imagine we will have to actually have to upgrade everything if this takes off, but that is not a quick thing. People will suffer in the mean time.

            Reply
        2. JDE

          After 10 years the battery has no warranty and the cost of a replacement makes the residual value of the vehicle so low it will effectively be scrapped if the battery fails, so their is that. now I suppose some rich folk will have already traded or sold this to a secondary owner who is then doing their best to have enough residual value to trade it in or sell it to cover a down payment or to pay off the note, but I think this is where the whole BEV movement will fail miserably and cause a lot of trouble for the middle class.

          Reply
          1. RWFA

            LoL with the 10 year old battery is out of warranty. By that time the car has 150,000+ miles on it and is likely on its 2nd or 3rd owner. And is headed for beater status.

            But even so, it will still have ca 70% of its original charge capacity and will run pretty much good as new and likely better than a similarly aged iCE box.

            Reply
      3. Tigger

        How many people do you know keeps a vehicle 10 years these days?

        Reply
        1. RWFA

          Don’t even have to keep it 10 years to achieve break even. If the depreciation curve in BEV is better than that of an ICE alternative, the TCO benefit will accrue to the owner in an even shorter period of time.

          Reply
          1. Zviera

            Yup totally agree. BEV’s are coming hard and fast. Lots of time and cash invested in R&D by manufactures for them to fail. Tesla making money hand over fist on each vehicle they sell. Ford deserves their cut also.

            Reply
        2. Montanan

          My 2011 F150 is…..wait, gotta take my shoes and socks off to do some math here……12 years old.
          Maybe I’m the only one who keeps a vehicle ten years these days.
          Well, ten years plus one year, and counting.
          And I also bought an ER* 12 years ago, which continues to operate just fine. I’ll tell ya, I was all against going electric for my refrigerator, and range, and dishwasher, and-and-and, but you know, I summoned my courage and went electric in the kitchen. Just might do it in the garage, too.
          For the Lightning.
          *Electric Refrigerator

          Reply
          1. Tigger

            I bet you’re F150 does not need a new engine or transmission either provided you properly maintained it. I am sure after 10 years given normal use, the battery pack will have to be replaced on the EV at the cost of at least $10k.

            Reply
          2. RWFA

            Oh poor tigger, he just can’t get over the aged battery failure fantasy (on a 150k mile vehicle) that is unlikely to happen.

            Some ancestor of his was probably all about “horses don’t have a crank that can break your forearm!”

            Reply
        3. JDE

          I have 5 that are that old, a couple that are newer though as well, and if they lost all the value at the 8 to 10 year mark, they would be pretty tough to sell to cover down payments or to pay of existing notes for those that have to take out long term loans to buy something new. You don’t comprehend the issues with people that do buy the 8 to 10 year old cars due to cost of something new.

          Reply
  2. EcoBoost29579

    Ford management truly has, once again, it’s head up its proverbial butt. The economy is tanking, interest rates are climbing and hardly anyone will continue to purchase outrageously overpriced vehicles; they will stack up on lots. Yesterday’s “soft landing” talk is just that. And Ford is THE poster child for having absolutely nothing in its lineup to offer when the small truly affordable sedan/CUV buying craze takes off. Delinquencies are already up, which will continue, followed by repos. And those folks will have to buy SOMETHING. It won’t be a Ford product, obviously. And don’t start on the Maverick. Most really don’t want a pickup.

    Reply
    1. RWFA

      As long as you didn’t shoot your wad on crypto, and can tighten your belt a bit, the apocalypse will be avoided.

      Reply
  3. Not yet

    No one is talking about much higher insurance and registration costs for EV’s. Energy costs are climbing quickly, especially electric. And what happens when govt starts adding road taxes to chargers and electric bills? My Tesla friend pays 41 cents per kw at Supercharger, I pay 10 cents a kw at home. When 2/3 of the country can’t come up with $1000 in an emergency, there is no way they can afford the up front cost of EV, nor the true “maintenance” cost of an EV. No one is talking about end of life costs and disposal / recycle issues either. All the “climate” people see is up front “clean” benefit, not the full life cycle cost in $ and environment. There is much to address before mainstreet America can afford an EV. But why do these Ford execs care, in 10 years they all will be retired with golden parachutes.

    Reply
    1. Jon

      Your Tesla friend likely charges mostly at home, for 10 cents – or about $10 bucks for a full tank. Even when on the road, paying 41 cents, he’s still paying half of what you are for gas. And you conveniently ignore the other items he doesn’t have to pay to maintain, replace, or get towed because of breakdowns….stuff like oil. coolant. radiators. fuel pumps. transmissions, head gaskets, ….you know, the very, very long list of parts on ICE vehicles that you’ve been paying to maintain/repair/replace at extremely high cost for your entire adult life.

      Reply
      1. RWFA

        Agreed Jon. So much selective extreme FUD gobbledegook as if he’s sock puppeting but at least he did leave “electric grid collapse” for someone else.

        Reply
    2. RWFA

      “True maintenances cost”, what are you even talking about?

      Full life cycle costs for battery disposal? Are you kidding? There’s money to be made in recycling the batteries.

      Golden parachutes? What keeps FOMOCO management in check? How about the fact the Ford Family Inc. (whose wealth is tied up in ownership of shares in Ford) controls enough voting shares to get what benefits them over the long term?

      Reply
  4. Dave Craigmile

    The reality is, I can “charge” my regular production 2021 F-150 XLT in 5 minutes with E-30 and am good for a conservative 600 miles nonstop; no EV can equal that range, summer or winter. I have driven a Tesla, Mach E and Lightning, they have considerable “instant” torque which would be good for drag racing, which I do not purchase vehicles for. I placed a tentative order for a 2022 Lightning in August of 2021 when they were advertised at just under $40,000, recently I have had e-mails from Ford that I can NOW order a Lightning, but ONLY those that list for 80 to 100 thousand $$$. When I had high school economics that was called “bait & switch”!!! dc

    Reply
    1. JDE

      Bait and switch it is, but it is a bit more frustrating because the low priced 300 mile pro models they liked to advertise were only available to fleet customers. All the rest of us were forced to pay the premium. This coming year they raised the prices 7000 or more dollars and also removed the 300 mile battery option at the lowest price point.

      Reply
    2. Jon

      And I can charge my Mach-E in my garage while I sleep, each day starting with a full “tank” and pay $100 less on fuel charges for every 600 miles you drive. Not to mention the $100 I save by eliminating oil changes, or $400 I save on tune-ups, or the thousands I save from having to replace broken water pumps, fuel pumps, radiator leaks, head gaskets, spark plugs, random oil leaks, catalytic converters, mufflers, etc, etc, etc…..And these days, I laugh as I drive by gas stations, watching all those people spending their time and money donating to big oil.

      Reply
      1. Tigger

        You forgot the extra thousands you will be paying for your EV’s tires that wear out twice as fast. Speaking of time….those people you laugh at at the gas station are on the road with a full tank of fuel and more range than an EV in five minutes. If you’re on a trip you’ll be spending at least five times as long juicing up your EV and driving away with a less than a fully charged battery force you to stop sooner to rejuice

        Reply
        1. RWFA

          Yeah Tigger, but didn’t we already establish that your long distance trip claimed 5-minute pit stops are only achievable if you don’t wash your hands? Ewww.

          As for tire wear, in the forums I’ve seen, folks are talking about a life reduction of 25 – 30%, not twice as fast.

          Ps LoL I notice the lack of a denial in your reply. You forgot ”lack of” before hygiene. Q.E.D.

          Reply
          1. Tigger

            Only you were obsessed with my bowell movements and hygiene.

            Reply
      2. Will

        Tune ups are not needed till 100k. Mach E still need brake system flush every 3 years, a transmission fluid change at 150K, same as Ice vehicles, coolant change at 200k, same as Ice vehicles, oil changes with tire rotations are $60.00 for Ice Vehicles. Figure in the savings in MSRP and ADM people are paying, you will not break even with a vehicle that gets 30 MPG and costs 30K. Not everyone pays CA gas prices either, $3.49 here in CT. Dealers know how to fix the Ice vehicles quicker with less lead time for parts.

        Reply
        1. RWFA

          All I heard here was an echo of: “Oh them dealer folk, ain’t never gonna be able to fix them newfangled motor cars, our blacksmith can show a horse in no time at all!”

          Ps jokes aside, this doesn’t seem to make sense: “Figure in the savings in MSRP and ADM people are paying, you will not break even with a vehicle that gets 30 MPG and costs 30K.” Do you mean compared to? If so, I guess that you’re assuming that a buyer is replacing a 30k$ ice vehicle with a more expensive vehicle. But that’s probably only the case in a very few situations.

          Reply
          1. JDE

            Maybe if they buy a Bolt or a Leaf, but good old Furd does not yet and likely ever will have a 30K BEV.

            Reply
          2. joe

            As usually the person knows the least makes less sense with each post. I hope you get some help with your anger issues also being alone all the time is not good your mind.

            Reply

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