Ford Plans Affordable EV Models and Promises Profitability
![Chris Teague](https://cdn-fastly.thetruthaboutcars.com/media/profile/2022/08/19/65688448_1.jpg?size=91x91)
Ford hasn’t had the best luck with profitability on its electric vehicle business, but the automaker is not shying away from aiming at the cheaper end of the EV spectrum. CEO Jim Farley recently confirmed that the company would purse sub-$30,000 electric models with its next-generation product line, and said that its existing models would become better in the meantime.
Farley noted that company executives are aware of buyers’ desire for more affordable EVs, noting Ford’s recent price cuts on the Mustang Mach-E, which gave the SUV a striking sales bump. The automaker’s hybrid models are quite popular, however, driven to a large degree by its expansive fleet business.
Ford’s gas-vehicle business, particularly its trucks, continues to generate strong revenues, giving it an advantage over electric-only automakers like Tesla, which has reportedly wavered in its desire to create an affordable electric car. Despite its struggles with EV profitability, the company feels confident that its lower-cost models won’t push it further into the red, as Farley expressed his belief that Ford would figure things out in the next few years.
CEO optimism is nothing new, as it’s often the only thing propping up companies’ stock prices. Tesla CEO Elon Musk recently announced a robotaxi program that will debut in August but also noted that the company would focus on accelerating more affordable model development. At the same time, it’s unclear how Ford plans to reach profitability with cheaper vehicles, as it’s slowed investments in new factories and other related areas.
[Image: Ford]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
![Chris Teague](https://cdn-fastly.thetruthaboutcars.com/media/profile/2022/08/19/65688448_1.jpg?size=91x91)
Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
More by Chris Teague
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- Lou_BC Well, I'd be impressed if this was in a ZR2. LOL
- Lou_BC This is my shocked face 😲 Hope formatting doesn't fook this up LOL
- Lou_BC Junior? Would that be a Beta Romeo?
- Lou_BC Gotta fix that formatting problem. What a pile of bullsh!t. Are longer posts costing TTAC money? FOOK
- Lou_BC 1.Honda: 6,334,825 vehicles potentially affected2.Ford: 6,152,6143.Kia America: 3,110,4474.Chrysler: 2,732,3985.General Motors: 2,021,0336.Nissan North America: 1,804,4437.Mercedes-Benz USA: 478,1738.Volkswagen Group of America: 453,7639.BMW of North America: 340,24910.Daimler Trucks North America: 261,959
Comments
Join the conversation
Go hybrid and wait for Toyota to finish its hydrogen engine and generator/separator.
So they are losing hundreds of millions of dollars and they are promising us a “Cheaper EV”? I wonder how that will look and feel? They killed the Fiesta because they claimed that they couldn’t make a profit on them and when I bought the first one in late 2010 they couldn’t deliver the accessories I wanted for it! Then I bought a 2016 Fiesta ST and again couldn’t get the accessories for it I wanted. They claimed that the components were going to be available, eventually. So they lost on that one as well! I don’t care about what they say anymore. I’ve moved on to another brand.