Summary
- Michael Barnard criticizes Jim Farley for being slow to transition Ford into the electric car era
- Ford created a division called "Model e" dedicated to electric vehicle development
- Ford is giving free EV chargers to customers to address fears of owning an electric car
- Jim Farley plans to focus on selling iconic vehicles like EVs, off-road trucks, SUVs, and muscle cars
- Ford is moving away from affordable cars to focus on more expensive and profitable models, targeting wealthier clientele.
Article
Michael Barnard criticized Jim Farley for not moving Ford fast enough into the electric car era, pointing out that Ford’s global sales of electric vehicles were significantly lower compared to Tesla and BYD. Ford responded by highlighting its efforts in creating a dedicated division for electric vehicles called “Model e.” This division had been planning for the EV future for years, as evidenced by their trademarking of “Model E” before Tesla.
Recently, Ford announced a new initiative to address the fear of the unknown surrounding electric cars by offering free EV chargers and assistance with installation for potential EV owners. Additionally, Jim Farley stated in an interview that Ford plans to stop building “boring” cars and focus on selling “iconic” EVs, off-road trucks, SUVs, and muscle cars. This shift in strategy includes discontinuing lower-priced models like the Fusion, Focus, Fiesta, Flex, C-Max, and Taurus to cater to wealthier clientele.
Farley emphasized that Ford’s future lies in higher-end markets and intends to compete with luxury brands like Porsche with models like the Mustang. Ford’s focus on iconic vehicles like the Raptor, Mustang, Bronco, and EVs aligns with this strategy. However, this shift towards premium models may pose challenges as the demand for conventional cars is declining, especially in China where new energy vehicles dominate the market.
Despite Farley’s confidence in Ford’s new strategy, there is skepticism among some about the company’s direction. The move towards premium models may not resonate with consumers looking for more affordable options, especially in a market where price cutting is emphasized. Some doubt Ford’s ability to compete with luxury automakers given their latest electric car offerings being based on an outdated platform.
In conclusion, Ford’s shift towards iconic and premium models under Jim Farley’s leadership raises questions about the company’s direction. While Ford is prioritizing bigger, faster, and costlier vehicles, some doubt the success of this strategy in a market where demand for conventional cars is diminishing. The challenge for Ford lies in balancing its transition from a brand for the everyman to a brand for the wealthy while also navigating the competitive landscape of the electric car market.
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