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]
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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.
“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.”