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Former Ford CEO Says High Prices Hindering EV Market

Over the past few years, many studies have shown that the pricing disparity between pure all-electric vehicles and traditional ICE models remains one of the biggest barriers standing in the way of more widespread EV adoption. For some time, this wasn’t necessarily an issue for automakers, however, as early adopters were happy to pay big bucks to bring one home. As those buyers exit the market, high prices – and concerns over rapid depreciation – have become more of a hinderance as well, according to former Ford CEO Mark Fields.

“As these prices come down, you take away one of the big inhibitors that are holding back the new EV market,” the former Ford CEO said during a recent interview with CNBC. “This is all about how do consumers feel about what their vehicle is going to be worth going forward. There are real issues around that. What happens in the used car market is all determined by the new car market. When prices go down in the new car market, that makes used vehicle prices go down. And when you think of the EV pricing market for new cars right now, you’ve got a demand slowdown, you’ve got high interest rates, you’ve got more competition.”

Ford Mustang Mach-E Tesla Supercharger North American Charging Standard NACS Adapter - Exterior 001 - Rear Three Quarters

For these reasons, Fields admits that he sees a rapid acceleration in terms of EV cost reduction in the near future as automakers work to convince customers to switch to electrified models. We’re already beginning to see this in action in terms of multiple automakers – including Ford, Stellantis, and Tesla – revealing that they’re working on $25k EVs to battle cheap Chinese models, which they believe will help provide the segment with compelling alternatives to traditional ICE models in the near future.

We’ll have more on EVs and pricing disparity soon, so be sure and subscribe to Ford Authority for continuous 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. Peter G

    Mark Fields = Failed CEO…

    Yeah Mark, it’s the high prices (ignoring all the surveys from multiple sources telling you that consumers don’t want them regardless of price

    Reply
  2. StarLord

    The random electrical fires and shoddy software updates didn’t help either.

    Reply
  3. Ford Owner

    Those who complain about high car prices cannot buy one and don’t deserve one.

    Reply
  4. Dwayne D

    These Excecutives are just brain dead. High prices are just 1 factor. Charge times, unknown reliability, cost of electricity, range is still a problem. Your not going to get what the vehicle says or is advertised it can go down much faster depending on alot of factors. No environmental benefits. When the battery dies its worse. Plus brakes where out faster and hurt the environment more plus tire wear is much less. The current guard rails cannot stop some electric vehicles because of the extra weight. If people are really worried about the environment then the strip mining is abig factor. New tech has always beena benefit. Nowadays its not and people think ist better. No one wants to face reality abd the truth.

    Reply

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