Ford CEO Shifts EV Strategy, Predicts Bleak Outlook Amid Policy Changes
Ford's CEO Jim Farley has outlined a shift in the company's electric vehicle (EV) strategy, emphasizing consumer choice and the potential of hybrid vehicles. He predicts a bleak outlook for EVs due to recent policy changes, with Ford forecasting a significant loss on car sales this year.
Farley predicts that President Trump's policies could see the share of zero-emission vehicles in the US drop from around 10% to 5%. He sees more opportunity in 'partial electrification', such as gas-electric hybrids, for most cars.
Ford plans to add hybrid production to its battery and EV plants to fill them with 'more stress' due to policy changes. This includes the elimination of a $7,500 consumer tax credit and softened emissions rules, which will sharply curtail car demand in the US. Ford's US car sales plunged 31% in the second quarter, partly due to a safety recall of the electric Mustang Mach-e. The company's electric vehicle unit, Model-e, lost about $1.3 billion in the second quarter.
Meanwhile, Volkswagen has delayed its electric vehicle production program, postponing the launch of new ID models like the ID.Golf and ID.Roc to 2030. The company is increasing investment in combustion engine and hybrid cars due to cost pressures and lower car sales.
Ford's CEO emphasizes consumer choice in fuel types and shifts its EV strategy to lower-cost cars, with a focus on hybrid technology. The company forecasts a potential loss of up to $5.5 billion on car sales this year, reflecting the challenges posed by recent policy changes. Meanwhile, Volkswagen delays its electric vehicle production program, indicating a shift in focus towards combustion engine and hybrid cars.
