Ford Motor Co.
Rouge Electric Vehicle Center 06 Shemika Winston 647a0cb7b2cdf 647e173443ada

EV cost parity still a decade away: Ford CEO

June 6, 2023
Ford CEO Jim Farley said that the company, which produces some of the most popular light- and medium-duty fleet vehicles, would need at least another product generation to simplify the designs of its electric vehicles and reduce costs.

Electric vehicles still have years to go before they become cost-competitive with vehicles running on internal combustion engines, according to Ford CEO Jim Farley.

Speaking during an investor conference last week, the OEM leader said that the company would need at least another product generation to simplify the designs of its electric vehicles and reduce costs. He said the cost parity target for a typical $40,000 EV will be between 2030 and 2035, during Ford's transition from its second to its third cycle of EV products. By then, he added, lithium iron phosphate batteries will dominate, and Ford will have "dramatically lower labor content and dramatically lower distribution costs."

See also: Daimler, Toyota strike deal to merge Fuso and Hino

Ford had the largest market share of new medium-duty truck sales last year, according to American Truck Dealers data. Its lighter-duty F-series trucks and commercial vans are among the most popular vehicles for light-duty fleets. The company began selling battery-electric versions—F-150 Lightning and E-Transit—in model year 2022.

Ford's CEO added that price competition concentrates on specific EV categories—but Ford's F-150 Lightning truck and E-Transit van are not being affected. He also stated that the pain among mass-market EV manufacturers would be "much, much harsher than people think" in order to significantly increase adoption rates.

Farley has long been hammering away at the need for simpler vehicle designs—and told the audience at the May 31 conference hosted by research firm Bernstein that the second generation of Ford EVs will have 40% fewer fasteners, for instance—but also said that “a lot more regulatory support” than the new $7,500 tax credit will be needed to get EV adoption rates to 50% of the U.S. market over time.

For more coverage of Farley’s remarks and details on how another global vehicle maker is creating its own “sustainable business model,” read this article by our colleague Senior Editor Geert De Lombaerde at IndustryWeek.com.

This article was originally published on FleetOwner.com.

About the Author

Commercial Vehicle Staff

Sponsored Recommendations

10 Steps Every Tech Should Follow Before Clearing Fault Codes

Are you tired of recurring fault codes? Clear them with confidence today! View the 10 steps that every technician should follow before attempting to clear faults.

Repair, Replace or Retire - Grab Your Calculator

Don't make the mistake of ignoring fleet maintenance. Learn how to be proactive instead of reactive and reduce up to 70% of breakdowns.

Mobil Delvac™ oils give race car haulers winning edge

See how Mobil Delvac™ oils boosted the Tony Stewart Racing Team

The Technician’s Guide for Mastering DPF Regens

Become a regen expert today! Equip yourself with the skills necessary to recognize when a forced regen is the correct procedure to maximize the lifespan of your filter and keep...