Summary
- Ford CEO Jim Farley drove through Europe in an electric vehicle and realized the need for a better charging infrastructure for EV adoption in the U.S.
- During the trip, Farley experienced little issues with charging unlike a previous journey in California, highlighting the importance of reliable access to charging for reducing range anxiety.
- Customers want a range of powertrain solutions, with some businesses moving towards electric vehicles to lower costs.
- Ford is postponing previously stated EV timelines and has dropped new products, including a three-row electric SUV and a new electric version of the F-150.
- The company’s EV segment recorded an EBIT loss of $1.14 billion in the second quarter, with projections of a $5-$5.5 billion loss for the whole year.
Article
In August, Ford Motor Co. CEO Jim Farley drove through Europe in an electric vehicle, where he met with Ford Pro employees, dealers, customers, and upfitters. He drove a new electric Ford E-Transit Custom and its plug-in hybrid variant and experienced little issues with charging during the journey. Farley noted that the lack of charging infrastructure is a key reason for stalled electric vehicle adoption in the U.S., highlighting the need for bolder investment by policymakers to achieve mass coverage. He also observed that customers prefer a range of powertrain solutions depending on their use of the vehicle, with some businesses opting for electric options to reduce costs.
Despite the push towards decarbonization, Ford has recently pulled back on its EV plans, postponing previously stated timelines and dropping new products. The company announced the cancelation of a three-row electric SUV planned for production in 2025 and pushed back the launch of an electric version of the F-150 pickup to 2027. Ford will now focus on making a new electric commercial van in 2026, with more details on the company’s EV strategy expected in the first half of 2025. This shift in strategy comes as Ford’s EV segment recorded an EBIT loss of $1.14 billion in the second quarter due to pricing pressure and lower wholesales, despite cost reductions.
Ford’s EV segment, referred to as Model E, is expected to incur a loss of $5 billion to $5.5 billion for the whole year. The company’s financial struggles in the EV space have prompted a reevaluation of its electric vehicle plans, leading to a delay in the introduction of new electric vehicles. Despite these setbacks, Farley remains committed to decarbonization and believes that hybrids, plug-in hybrids, and partially electric vehicles will coexist with electric vehicles for a longer period than previously thought. The CEO’s journey through Europe highlighted the importance of reliable charging infrastructure in driving EV adoption and the need for continued investment in this area to support the transition to electric vehicles.
Overall, Ford’s recent experiences and financial challenges in the EV space have prompted a reevaluation of its electric vehicle strategy. While the company remains committed to decarbonization, it has postponed new electric vehicle launches and faces significant losses within its EV segment for the year. Ford’s CEO, Jim Farley, emphasizes the need for policymakers to invest in charging infrastructure to support the growth of electric vehicle adoption in the U.S. Despite these setbacks, Ford continues to explore a range of powertrain solutions to meet customer demand and reduce costs for businesses transitioning to electric vehicles.
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