Ford to remain hopeful about EVs even if Trump gets reelected
07/25/2024 09:55 AM
Ford endeavors to remain hopeful about electric vehicles (EVs) even if former President Donald Trump wins the 2024 presidential elections later this year.
Ford CEO Jim Farley recently emphasized that the legacy automaker will continue to focus on launching smaller and more affordable electric vehicles despite a Trump presidency. While addressing the Republican National Convention in Milwaukee, the Trump announced plans to end President Biden's EV mandate during his first day in office, if he wins. Trump's announcement hints at the future of the electric vehicle market in the United States under his presidency.
Ford is focused on the global EV market and competition with China.
"We believe that the fitness of the Chinese in EVs will eventually wash over our entire industry in all regions. And so we believe as a company, even if there were short-term adjustments we can make to a compliance-led lower requirement lineup, we're not going to approach it that way. We really believe what I said, which is that many Americans would find an electric vehicle lowering their cost. Not everyone, but a high percent," said Farley.
Last month, Farley shared Ford’s plans to release a $30,000 all-electric vehicle, which he predicts will be profitable in 2.5 years. The Ford CEO also talked about the value of smaller EVs to customers and the EV transition.
"You have to make a radical change as an (automaker) to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs.That's the duty cycle that we've now found that really matches. These big, huge, enormous EVs,they're never going to make money. The battery is $50,000… The batteries will never be affordable," said Farley in June.
Earlier this week, Ford's EV segment reported an EBIT loss of $1.14 billion in Q2 2024, reported Reuters. The legacy automaker credited its EBIT loss to industry-wide pricing pressure and lower wholesales.
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