Summary
- Ford CEO Jim Farley expressed concerns about the drawbacks of fully electric large SUVs and trucks for commercial and retail customers
- Ford plans to focus on small and medium-sized EVs that are more economically viable instead of pursuing battery-electric models across all segments
- Sales of electric pickups, like the Cybertruck and GMC Sierra EV, did not meet expectations in 2024 due to high prices and poor real-world efficiency
- Ford is shifting towards extended-range electric vehicles (EREVs) that have a gas-powered generator for backup, targeting commercial customers for heavy-duty EVs
- Ford is developing affordable, high-volume EVs for small and medium-sized trucks and SUVs that are well-suited for daily commuters.
Article
Ford CEO Warns Against Fully Electric Large SUVs and Trucks
Ford CEO Jim Farley explains the drawbacks of fully electric large SUVs and trucks. During Ford’s Q4 2024 earnings call, he emphasized the challenges of making electric vehicles economically viable for larger retail customers with demanding use cases. Farley pointed out issues such as towing, off-roading, and long road trips that make large electric vehicles less feasible due to their weight and aerodynamics, leading to large and expensive batteries.
High Costs and Limited Efficiency of Electric Pickup Trucks
The cost of electric pickup trucks from companies like Tesla and General Motors can be significant. The prices for models such as the 2025 Chevy Silverado EV, Tesla Cybertruck, and GMC Sierra EV start at around $70,000 to $92,000, not including additional fees. Additionally, these vehicles often have massive battery packs and face challenges with real-world efficiency, impacting their overall appeal to consumers and resulting in lower sales figures.
Challenges Faced by Electric Pickup Trucks in 2024
While electric pickup trucks like the Tesla Cybertruck saw some success in 2024, they did not meet initial expectations in terms of sales figures. The Cybertruck, in particular, fell short of projected sales numbers, indicating a disconnect between consumer demand and the performance of electric trucks. Sales of Ford’s F-150 Lightning also faced challenges when compared to traditional gas-powered pickups, leading to production cuts to balance supply and demand in the market.
Profitability and Future Plans for Large Family Haulers
Ford’s CEO Jim Farley highlights the lack of willingness among retail customers to pay a premium for large electric vehicles, making them a tough business case. Instead, Ford plans to focus on profitability through PHEVs, hybrids, and EREVs that offer extended range and efficient performance. The company aims to offer vehicles that can provide over 700 miles of range on one tank of gas while primarily driving on electric power for daily commutes.
Ford’s Approach to Large SUVs and Trucks
Ford is shifting towards extended-range electric vehicles (EREVs) to address the challenges associated with large SUVs and trucks. EREVs feature an electric powertrain similar to battery-electric vehicles but include a gas-powered generator for backup. This approach allows for continuous driving with the electric motors while recharging the battery through the generator when needed. Ford sees EREVs as a suitable option for heavy-duty applications and commercial customers who have access to charging infrastructure.
Focus on Affordable, High-Volume Electric Vehicles
Ford is prioritizing the development of affordable, high-volume electric vehicles in the small and medium-sized truck and SUV segments. These models are considered ideal candidates for pure EVs, as they require lower-cost batteries and align with the daily commuting needs of consumers. Farley emphasizes the importance of offering models that are both economically viable and appealing to a broad range of customers.
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