Friday, July 12, 2024
NewsFord wants a small EV with a $30,000 starting price

Ford wants a small EV with a $30,000 starting price

  • Ford’s CEO, Jim Farley, unveiled his plans during an interview with CNBC.

  • The $30,000 small EV will be profitable, according to Farley.


 

One of the obstacles to the adoption of electric cars is their price. Despite the availability of government incentives, consumers are still reluctant to go electric because of the exorbitant prices of these technology-laden EVs.

Ford EV based on VW MEB platform | Photo: Ford

To make electric cars more accessible, manufacturers will have to look at more affordable options. That’s what Ford CEO Jim Farley said in an interview with CNBC. In fact, Farley said it was time to fall back in love with small cars, both for the company and for the adoption of EVs.

This isn’t the first time Ford has talked about a more affordable electric vehicle. The Dearborn-based manufacturer currently markets the Ford Mustang Mach-E, the Ford E-Transit and the Ford F-150 Lightning, but none of these vehicles are affordable or even smaller in size.

2022 Ford F-150 Lightning Pro | Photo: Ford

He also added that Ford would eventually add an EV with a starting price of $30,000 (in U.S. dollars), and that it would even be profitable for the brand. Since the start of the electric adventure, Ford has been losing money on every electric vehicle it sells.

Lately, the American automaker has hired several ex-engineers from young companies such as Lucid, Tesla and Rivian, to name but a few. These moves will only accelerate the arrival of this series of more affordable EVs.

According to Ford’s top man, large electric vehicles are not profitable, simply because of the very high cost of the on-board battery. What’s more, the imminent – or potential – arrival of Chinese brands in North America could shake up the local market. Ford must therefore react quickly, especially as the competition is not limited to Chinese manufacturers. Several better-known brands on the North American continent already have or are coming up with less expensive options.

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