Consumer demand for electric vehicles in Europe has fallen significantly in recent months, forcing automakers to change their plans. Ford has postponed billions of dollars in electric vehicle investments, cut electric vehicle production, and lowered its profit margin targets.
As a response strategy, Jim Farley recently said, "Our priority now is to develop a platform that can produce cheaper electric vehicles." The goal is to achieve profitability within 12 months of the platform being put into production. ”
A few days ago, according to the "European Automotive News", Ford CEO Jim Farley said, "The rapid development of the electric vehicle market makes it more difficult for car companies to plan and deploy. But for Ford, the next step will be to focus on developing, selling, lower-cost, and more profitable small electric vehicles. ”
Specifically, consumer demand for electric vehicles in the European market has declined significantly in recent months, forcing automakers to change their original plans. For example, Renault recently announced that it would suspend the independent listing plan of its electric vehicle business Ampere due to the downturn in the capital market. Ford, on the other hand, has postponed its multibillion-dollar investment plan in the electric field, cut electric vehicle production, and lowered its profit margin target, which is almost equivalent to a complete overhaul of its original electrification strategy.
At the same time, Ford Motor also previously said that it expects to lose between $5 billion and $5.5 billion in Ford's electrification segment in 2024. In previous years, Ford's losses in the field of electric vehicles had reached billions of dollars a year.
As a response strategy, Jim Farley recently said that Ford Motor is embarking on the development of an electric vehicle platform for smaller, more affordable products, and is committed to making the platform profitable once it is put into use. Specifically, he said, "Our priority now is to develop a platform that can produce cheaper electric vehicles. The goal is to achieve profitability within 12 months of the platform being put into production. ”
The reason for the strategic focus is that European consumers are more likely to demand cost-effective electric vehicles. According to Jim Farley, "In the European market, an electric car that is larger than the Ford Escape can only be favored by consumers when it is used as a work car, which is a smaller market. In contrast, an electric vehicle that is smaller than the Ford Escape is more attractive to a wide range of consumers because of its lower price and better cost of ownership. (Compiled by Guo Yue, China Economic Net).
*: China Economic Net.