.jpg)
When you think of “American car,” what comes to mind?
It could be a full-size SUV like the Chevrolet Tahoe or Suburban, Ford Expedition, or Lincoln Navigator. These large vehicles are popular as family haulers, and are sought after for their size and sense of security.
But as with automakers like Ford, (F) As Americans move toward an electric future and look to compete head-to-head with Chinese automakers like BYD, CEO Jim Farley says American buyers will have to make sacrifices and shed a seemingly un-American car addiction for the sake of the auto industry’s future.
Related: Young Car Enthusiasts Are Interested In A New Kind Of Classic Car
In a recent appearance at the Aspen Ideas Festival, Ford’s CEO hinted that the company is intent on launching a profitable $30,000 all-electric car, developed by a secretive California-based “skunkworks” team.
However, Farley noted that Ford’s next generation of electric vehicles will not be the full-size SUVs and trucks that the brand is known for, as the team is focusing on more compact, affordable vehicles that can be profitable for the brand.
Although Americans want larger-than-life vehicles that can travel more than 300 to 400 miles, Farley argues that this kind of expectation about such vehicles would be unprofitable and very expensive not only for the company, but also for the consumer.
You have to make a radical change as [automaker] “To get to a profitable electric vehicle, the first thing we have to do is put all of our capital into smaller, more affordable electric vehicles. That’s the business cycle that we’ve found now that really matches up. These big, bulky electric vehicles will never make any money. The battery costs $50,000… Batteries will never be affordable,” Farley told EV Blog. My tsaratiA Ford representative indicated that the CEO was toying with the idea of producing an electric version of the brand’s heavy-duty Super Duty pickup trucks, not the F-150 Lightning.
“monster vehicles”
stronghold
Although the bulk of the automaker’s bottom line comes from sales of pickup trucks and other gas-guzzling vehicles, Ford’s CEO has realized that Americans need to embrace smaller vehicles if the company wants to be profitable and compete with the latest and greatest Chinese cars.
“We need to start getting our love back for smaller cars. This is critical to our society and to the adoption of electric vehicles. We love these big vehicles, and I love them, but the main problem is their weight.
“If we can’t make money on electric vehicles, we’re going to have competitors who have the largest market in the world, who already dominate the world, who already have their supply chain all over the world. If we can’t make profitable electric vehicles in the next five years, what’s the future? We’re going to be North American,” Farley said.
More electric car work:
- Electric cars are contributing to the impending environmental crisis, a new study suggests.
- GM CEO Has Bold Plans to Revive Iconic Electric Sports Car
- Ford CEO says iconic model will ‘never’ be electric
Farley’s Advantage
Farley expressed confidence in Ford’s ability to build a profitable electric car in the United States, praising the effective government policy that discourages low-cost Chinese electric cars from touching American soil, which has been a huge benefit to Ford.
Ford currently enjoys an economic protection from a 27.5% tariff that targets vehicles made in China before a tire ever touches U.S. soil. President Biden recently unveiled a plan to impose tariffs on cars made in China. A set of tariffs targeting ChinaChina’s “clean energy” initiatives, including a 100% tariff on electric vehicles from the People’s Republic of China.
In a recent interview with AxiosFarley noted that government policies have helped “level the playing field with low-cost Chinese competitors” such as those made by auto giant BYD, adding that regulations also help address concerns about customer privacy and the data such companies handle.
“The government seems very serious about passing a policy on data privacy and autonomous technology coming from [Chinese automakers]“With the recent changes, I am more confident than ever that we will have an equal opportunity with the Chinese in the United States,” he told Axios.
Related: Veteran Fund Manager Picks His Favorite Stocks for 2024
