As most consumers are well aware, while electric vehicle sales have grown exponentially in recent years, a few major barriers to mass adoption remain. Those issues include limited range, range anxiety, a lack of charging infrastructure, and of course, the fact that EVs are simply more expensive to build and buy than most comparable ICE models, generally speaking. Ford CEO Jim Farley is well aware of these facts, and mentioned that he knows EV pricing is a major issue for buyers at the moment while speaking during a recent update on negotiations with the United Auto Workers (UAW) union.
“On the E side, as we make this transition for some customers in the EV space, no doubt price is the major issue for people moving to battery electric. 20 percent, 30 percent, 40 percent of America is interested in EVs, but it has to be at the right kind of price, and we’re finding that now. So affordability is always an issue. That’s why we launched the Maverick on the ICE world, our most affordable vehicle, and that’s why we’re going to always have affordable EVs, and batteries are the largest component in the EV.”
This isn’t the first time that Farley has mentioned this particular topic, as back in March, he pointed out that batteries continue to serve as the main barrier to the automaker’s efforts to ramp up EV production, as most of the materials used in their construction are currently constrained and coming from foreign countries. Regardless, the exec remains confident that EVs will eventually overtake ICE vehicles, and he already believes they’re superior in many ways.
In the meantime, EVs and Ford’s under-construction electric vehicle and battery plants remain a big sticking point in negotiations with the UAW, which is seeking job protection guarantees as electric vehicles require less labor to produce than ICE vehicles. Farley recently accused the union of holding up contract talks over this very same matter, and even went so far as to call EVs a “political football” recently, noting that “customers are going to decide what kind of vehicle they buy from Ford, as they already do.”
We’ll have more on EV pricing soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
Farley is half correct.
Sucks that the feds are forcing his (and all manufacturers) hands to go electric.
Thanks captain obvious.
Buyers don’t want to pay more for vehicles with more limitations. Frankly, with the economic and affordability issues new cars have right now in general, people don’t want to pay more in general for new cars.
The automakers are in for a bloodbath as things don’t take off as they hoped. The big money bankers that pushed this agenda will probably still get their money somehow. Probably via bought off politicians , paid for by the public.
Exactly.
“Buyers don’t want to pay more for vehicles with more limitations”.
But, they are.
What is a limitation for you is not for others.
If Farley was truly concerned about EV pricing for customers, he would apply the $7,500 tax credit from the Inflation Reduction Act to leases as an up-front capital cost reduction for the customer rather than keeping that money for Ford. Until that happens, everything else he says on the subject is BS.
Would you then agree that you know as much or more about his job to know that it would be the right decision to do that?
The actual government has already implemented this for 2024.
Canadian government has gone all in gifting VW and Stellantis 30 billion dollars in various grants, outright cash and tax breaks. Ex Greenpeace activist is our “Minister of Environment & Climate Change”. Would shut off oil tomorrow if he could. We are in serious trouble. Paying roughly 10.00 a gallon for gas in many areas already due to excess taxation! So glad I sold my Ford dealership 2 years ago!!
I suspect the geniuses in our American government will attempt the same. Rather than reduce the costs of EVs, they will try and increase the costs of ICE vehicles to close the gap by increasing fees and taxation on ICE vehicles and continuing to make unrealistic efficiency goals.
If they were free, I wouldn’t buy one. More junk for the landfill. Earth’s precious resources being wasted.
Farley talks alot about Ev’s and most of what he says is not good. It’s a thorn in his side.
I for one would only consider an pure EV if I could save $$$ on fuel. At current prices that payback will never happen, let alone all the other downsides of range, etc.
Break even on a comparable ICE vehicle on fuel savings alone is about 5 years. Less if you are able to take full advantage of tax credits. Local munis also have rebates for installs. You’re making arguments from 5 years ago.
No you also have to figure in the depreciation factor which is much higher on the EVs. That adds years to break even.
Most automotive news articles are saying people in this country don’t want and aren’t buying EVs. Like we read online… #BudLightEVs
Imagine waking up from a dream where everyone was begging for an EV. Once awake, you commit endless billions of dollars to produce and sell EV’s. Then finally someone reminds you that it was only in your dreams that the masses were even remotely interested in an EV. I come from a strange time where in business you attempt to sell what people want or are actually asking for. Today it seems that they are making what’s not being asked for and trying to convince people to buy? The fact that they’re massively overpriced, short on range and eons away from the proper infrastructure seems to be taken as a hiccup. Perhaps if they paid the CEO another 10 or 20 million per year they’d find one with an once of common sense.
110% accurate. Time to teach them that they can’t force us to buy something.
Now?
How?
News flash Ford…..
Its not just the EVs. Everything you sell is over priced. No matter what model you consider there is a BETTER equipped MORE reliable option available for LESS money by the competition. When I can buy a very well equipped Lexus for less than a Ford…. why wouldnt I? I used to be a faithful Ford buyer. I have bought 3 new cars in the last 3 years for my family. I dont even bother stopping at the Ford dealer anymore.
What Lexus is less than it’s Ford counterpart?
Ford is not going to be able to sell the EVs that are already on its lots without drastic price reductions. The leader in EVs is Tesla and Tesla prices are dropping. The difference between Tesla and Ford is that Tesla’s manufacturing process allows for profitability with price reductions.
Celilo, Its beginning to look like it DOES require a “Rocket Scientist” to build a
successful battery electric vehicle. Tesla has one, Ford (and others) don’t.
I just want to know why there are so many Ford haters subscribed to Ford Authority.
Paid propagandists trolls hired by the competition
Alfred, many of the posters here are long-time Ford owners who have become
convinced that Ford no longer cares about the kind of vehicles that we want;
nor do they strive for affordability and quality. It seems to us that Ford’s new
direction is to offer what THEY think you need and not what you would prefer.
They no longer build automobiles, they are continuing to discontinue entry-level,
affordable vehicles, and, are hell-bent on becoming the BEV kings of the auto
industry. Plus, they have failed to reel in their dealers who price gouge on poplar
models. And , of course, their quality leaves much to be desired. No, its not “hate”; its a feeling of betrayal, of abandonment and caring
only about their rich clientele. So, don’t be so condescending to those who feel
as if they no longer matter to Ford after many years of being loyal customers.
p.s. I’ve purchased 23 new Ford cars and trucks in last 30 years and still own 3,
so this gives me reason to expect better from Ford.