Over the past couple of years, Ford CEO Jim Farley has been keen to talk about the automaker’s second-generation all-electric vehicles, which will be simplified, fully updatable, and ride on dedicated platforms, making them quite profitable – which isn’t the case with the automaker’s first-generation Ford EVs. However, while Farley has previously mentioned timelines in regards to when the company expects current EVs to become profitable, he just shared those same details regarding second-gen Ford EVs while speaking to investors on the automaker’s Q4 2023 earnings call, too.
“Our overall EV strategy has never been more relevant as the seismic change happens, and we want to share with you our targets,” Farley said. “Our next Gen 2 products will be profitable in the first 12 months of their launch. And that will mean that we’ll get to mid-to-high single-digit EBIT profit margins over their life cycle, and that’s going to deliver profits above Model e’s cost of capital. And here are our big bets and adjustments. We’re going to spend less capital on larger EVs. And as we’ve always said, we’ll have a very small number of those.”
As Farley notes here, Ford plans to invest more in cheaper, smaller EVs moving forward as the company aims to ramp up sales as prices for those types of vehicles continue to prove to be a big barrier for consumers. Additionally, FoMoCo may also delay the launch of certain EVs as it continues to retool its strategy, too.
Otherwise, we already know that all future Lincoln EVs will be second-generation models, as Farley previously shared, and all of its next-gen products will come packed with digital experiences. The Ford CEO also recently noted that the automaker may wind up using a 48-volt electrical architecture as well, which is something the Tesla Cybertruck currently utilizes.