Ford Plans Affordable EV Models and Promises Profitability

Chris Teague
by Chris Teague

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]

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Chris Teague
Chris Teague

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.

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4 of 59 comments
  • V8-1 V8-1 on Apr 26, 2024

    Go hybrid and wait for Toyota to finish its hydrogen engine and generator/separator.

    • See 1 previous
    • Jalop1991 Jalop1991 on Apr 28, 2024

      Jesus, Vo5. You must be a hoot at parties.

  • Scott Scott on May 22, 2024

    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.

  • 3-On-The-Tree I don’t think Toyotas going down.
  • ToolGuy Random thoughts (bulleted list because it should work on this page):• Carlos Tavares is a very smart individual.• I get the sense that the western hemisphere portion of Stellantis was even more messed up than he originally believed (I have no data), which is why the plan (old plan, original plan) has taken longer than expected (longer than I expected).• All the OEMs who have taken a serious look at what is happening with EVs in China have had to take a step back and reassess (oversimplification: they were thinking mostly business-as-usual with some tweaks here and there, and now realize they have bigger issues, much bigger, really big).• You (dear TTAC reader) aren't ready to hear this yet, but the EV thing is a tsunami (the thing has already done the thing, just hasn't reached you yet). I hesitate to even tell you, but it is the truth.
  • ToolGuy ¶ I have kicked around doing an engine rebuild at some point (I never have on an automobile); right now my interest level in that is pretty low, say 2/5.¶ It could be interesting to do an engine swap at some point (also haven't done that), call that 2/5 as well.¶ Building a kit car would be interesting but a big commitment, let's say 1/5 realistically.¶ Frame-up restoration, very little interest, 1/5.¶ I have repainted a vehicle (down to bare metal) and that was interesting/engaging (didn't have the right facilities, but made it work, sort of lol).¶ Taking a vehicle which I like where the ICE has given out and converting it to EV sounds engaging and appealing. Would not do it anytime soon, maybe 3 to 5 years out. Current interest level 4/5.¶ Building my own car (from scratch) would have some significant hurdles. Unless I started my own car company, which might involve other hurdles. 😉
  • Rover Sig "Value" is what people perceive as its worth. What is the worth or value of an EV somebody creates out of a used car? People value different things, but for a vehicle, people generally ascribe worth in terms of reliability, maintainability, safety, appearance and style, utility (payload, range, etc.), convenience, operating cost, projected life, support network, etc. "Value for money" means how much worth would people think it had compared to competing vehicles on the market, in other words, would it be a good deal to buy one, compared to other vehicles one could get? Consider what price you would have to ask for it, including the parts and labor you put into it, because that would affect the “for the money” part of the “value for money” calculation. An indicator of whether people think an EV-built-in-a-used-car would provide "value for money" is the current level of demand for used cars turned into EVs. Are there a lot of people looking for these on the market? Or would building one just be a hobby? Repairing an existing EV, bringing it back into spec, might create better value for the money. Although demand for EVs is reportedly down recently.
  • ToolGuy Those of you who aren't listening to the TTAC Podcast, you really don't know what you are missing.