Our EVs Will Turn a Profit, Ford Says

Steph Willems
by Steph Willems
our evs will turn a profit ford says

As it prepares to launch a battery electric crossover, likely named Mach E, in 2020, Ford’s product boss told Blue Oval fans — and nervous investors — that the company isn’t in the habit of losing money with its products. As such, the upcoming Mustang-inspired crossover, like Ford’s other planned EVs, won’t be Fiat 500e-like money drain.

That’s one of the company’s promises, and here’s another: an electric F-150 and Transit.

Jim Farley just said “battery electric *and* hybrid” F-Series and Transit coming. $F

— John Rosevear (@john__rosevear) January 16, 2019

As Ford’s president of global markets, Jim Farley, took to the stage at the Automotive News World Congress in Detroit, the automaker’s product chief, Hau Thai-Tang, did the same over at the Wolfe Research Global Auto Industry Conference.

Speaking about the company’s forthcoming EVs, Thai-Tang said, “This is not a strategic action to make people feel good. It’s going to have to deliver its demand on capital.”

By 2022, Ford plans to introduce 16 EVs and 24 hybrids of various types, funded by $11 billion and spearheaded by the company’s Team Edison. As Automotive News reports, Thai-Tang knows that getting consumers interested in gasless driving won’t be easy. The same goes for achieving profitability.

“Certainly we have to do our work to build the demand and educate the consumers and drive down the cost,” he said.

Ford’s EV crossover is expected to bow with more than 300 miles of range and a certain degree of sporting pretension. When asked, last year, to describe the vehicle, Farley said, “imagine a vehicle with the profile of a Porsche Cayenne and the swagger of a four door Mustang.”

As for a battery-electric F-150, Ford has hinted at the possibility before. Both former chief technology officer Raj Nair and chairman Bill Ford have suggested that an EV pickup is a natural progression from the hybrid model Ford plans to launch in 2020. Joining the gas-electric pickup in the Blue Oval stable will be a hybrid Mustang.

[Image: Ford Motor Company]

Comments
Join the conversation
2 of 32 comments
  • Danio3834 Danio3834 on Jan 16, 2019

    There's potential profitability with sexy luxury electrics/PHEVs, and perhaps high end pickups as these products have the margin to absorb the increased costs. However, this price class is well above the average so volume will be rather low. A gross profit per unit is great, but will the volume be sufficient to offset all the net costs? Expensive gamble as the only electrics that are selling in any real volume have a T badge whose clout is far stronger with this buyer demographic than the Blue Oval. Though, it has clearly been Hackett's strategy to try and take the brand there.

  • EBFlex EBFlex on Jan 16, 2019

    “When reached for comment, Elon Musk (who is a complete fraud) said Ford was astoundingly stupid for looking to make a profit on the items it sells.”

  • Wjtinfwb Over the years I've owned 3, one LH (a Concorde) a Gen 1 300 and a Gen 2 300C "John Varvatos". The Concorde was a very nice car for the time with immense room inside and decent power from the DOHC 3.5L. But quality was awful, it spent more time in the shop than the driveway. It gave way to a Gen 1 300, OK but the V6 was underwhelming in this car compared to the Concorde but did it's job. The Gen 1's letdown was the awful interior with acres of plastic, leather that did it's best imitation of vinyl and a featureless dashboard that looked lifted from a cheaper car. My last one was a '14 300C John Varvatos with the Pentastar. Great car, sufficient power and exceptional highway mileage. The interior was much better than the original as well. It was felled by a defective instrument cluster that took over 90 days to fix and was ultimately lemon law' d back to FCA. I'd love one of the 392 powered final edition 300s but understand they're already sold out and if I had an extra 60k available, would likely choose a CPO BMW 540i for comparable money.
  • Dukeisduke Thanks Cary. Folks need to make sure they buy the correct antifreeze, since there are some many OEM-specific ones out there (Dex-Cool, Ford gold, Toyota red and pink, etc.).And sorry to hear about your family situation - my wife and I have been dealing with her 88-yo mom, moving her into independent senior living, selling her house, etc. It's a lot to deal with.
  • FreedMike Always lusted after that first-gen 300 - particularly the "Heritage Edition," which had special 300 badging and a translucent plastic steering wheel (ala the '50s and '60s "letter cars").
  • Dave M. Although the effective takeover by Daimler is pooped upon, this is one they got right. I wasn't a fan of the LHs, mostly due to reported mechanical, NVH and build quality issues, but I though Chrysler hit it out of the park with the LXs. The other hyped release that year was the Ford Five Hundred, which, while a well-built car with superior interior space, couldn't hold a candle to the 300.
  • Art Vandelay I always liked those last FWD 300's. Been ages since I've seen one on the road though. Lots of time in the RWD ones as rentals. No complaints whatsoever.
Next