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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
  2. 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
  3. 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. 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. 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. 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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