A price war is coming.
New battery chemistries and fewer advertising dollars spent will lower sticker prices.
Ford’s CEO, Jim Farley, is looking to the future where he expects that building an electric vehicle will drop to a point where a $25,000 price tag will become commonplace.
Truth is that GM and Nissan are already selling EVs that retail for barely more than $25,000 in the US. As for Ford, the 2022 Mach-E was priced from $43,895 for its most basic trim – “was” because they’re sold out…
Even so, Farley sees a future where building a new EV will cost as little as $18,000 meaning a sticker price of about $25,000 will be feasible. Currently, a new battery is $18,000 while a charger tacks on an extra $3,000.
New battery chemistries, lower advertising and distribution costs, and less material and labour, will all contribute to lowering prices.
“Half the fixtures, half the work stations, half the welds, 20% less fasteners,” Farley said as reported by ABC News. “We designed it, because it’s such a simple product, to radically change the manufacturability.” He added: “The re-engineering for the vehicle to minimize the size of the battery, since it’s so expensive, is going to be a game-changer for these second-generation products,”