Thursday, July 18, 2024
NewsFord CEO Says EV Adoption Slower Than Expected

Ford CEO Says EV Adoption Slower Than Expected

Gas profits paying for EV development

  • Farley thinks this sluggishness will benefit Ford

  • Statement comes after reports of slow Ford EV sales


The CEO of Ford has said that EV adoption rates are slower than the company had expected. But the head of the company thinks that the slowness will benefit companies like Ford that have gotten into the EV transition early.

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Ford CEO Jim Farley said during the company’s earnings call last week.

“EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” he added, clarifying how it would benefit Ford.

Ford expects to hit 600,000 EVs per year sometime next year, on the way to two million. But the automaker sees the need to balance growth and profitability during the transition period.

Ford Model e, the branch of the company that is responsible for Ford’s EV operations, has seen revenues climb 39 percent in the second quarter of the year, which has Farley optimistic. But even with that, Ford expects to lose around U.S. $4.5B this year, which it says reflects “the pricing environment, disciplined investments in new products and capacity, and other costs.”

Ford Blue, the gas and hybrid side of the company, had earnings of $4.9B in the first half of the year, which is helping to pay for the electric transition.

 

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