At the ongoing Aspen Ideas Festival, Ford CEO Jim Farley made a notable statement. He asserted that the American brand will introduce an “affordable” electric vehicle priced at $30,000 (approximately 765 million VND) by 2027, and it will be profitable.
Farley emphasized that this upcoming vehicle will be different from Ford’s current electric lineup, which has been incurring significant losses for the company due to various expenses. According to Ford’s electric division, Model e, the company lost a staggering $132,000 on each of the 10,000 electric vehicles sold in the US in the first quarter of 2024.
Ford’s electric vehicle business is less successful in North America but has gained acceptance in Europe with the Explorer EV, which uses a Volkswagen platform. Source: Ford
While the CEO did not provide further details about this affordable offering, he mentioned that it is being developed to compete with Chinese electric vehicles, including those from the formidable BYD. Another target for Farley is the upcoming affordable Tesla, which is promised to be released by the end of this year.
Additionally, Jim Farley suggested that American consumers should gradually move away from the trend of “bigger is better” if the nation wants to embrace a greener, more sustainable electric future.
“We [Americans] need to go back to small cars; this segment is incredibly important to society and the process of electrification,” the Ford executive shared with the media. “I also love large cars, but their weight is an issue that cannot be ignored.”
After focusing on large electric projects like the Mustang Mach-E and F-150 Lightning, Ford is shifting its strategy to smaller, more efficient electric vehicles. Source: Ford
According to Farley, Ford will concentrate on optimizing small electric vehicles instead of electrifying large ones, as they are not financially viable for both the company and consumers. “Those giant electric vehicles will never make big profits. The batteries alone cost $50,000 (approximately 1.27 billion VND),” he remarked.
Moreover, the CEO emphasized that if Ford does not enter the affordable electric vehicle segment in the near future, they will be left behind by the rapidly expanding Chinese electric vehicle market. While these Chinese vehicles may face a 100% import tax when entering the North American market, they could easily outcompete Ford’s electric offerings in other regions.
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