Cars
Ford Motor: Dilemmas and Decisions in the Exploration of New Energy.
Introduction. With the increasing attention to environmental protection and sustainability, the new energy vehicle market has ushered in an unprecedented prosperity. However, in this turbulent market, Ford has chosen a different path from mainstream car companies to face and solve the dilemma in the field of new energy vehicles. Recently, Ford announced the closure of all electric vehicle production lines, a decision that has attracted widespread attention and discussion in the automotive industry.
Overview of the new energy vehicle market.
New energy vehicles have become the dominant force in the future automobile market, and pure electric vehicles, as the core of them, have attracted much attention. Traditional automakers such as Toyota have stepped up their R&D efforts in the field of pure electric vehicles, knowing that if they fall behind in this field, they will lose the competitive advantage of the entire automotive market. The world of the future automobile market seems to belong to new energy vehicles.
Ford's dilemma.
However, Ford is in trouble in the new energy vehicle market. Sluggish sales, frequent safety issues, and huge losses are intertwined, making it difficult for Ford to gain a foothold in the field of new energy vehicles. Poor sales performance was the main reason for this, with Ford's electric car business losing more than $4 billion in 2023, forcing the company to take emergency measures, including layoffs, to save money.
The decline in sales is mainly due to Ford's relatively low investment in battery electric vehicles, and Ford's choice is relatively conservative compared to its competitors' new energy vehicle product lines. Toyota, Tesla and other companies continue to develop in the pure electric vehicle market, so that Ford's traditional fuel vehicle product line gradually lost market share, and the sales of electric vehicles of less than 2,000 units have further weakened Ford's market competitiveness.
In addition to sluggish sales, Ford's electric vehicle business has also been plagued by safety concerns. In February last year, the first all-electric pickup truck, the F-150 Lightning, spontaneously combusted on the production line, which caused widespread concern in the electric vehicle industry. While spontaneous combustion of BEVs is not uncommon, the cases that have occurred on the production line are unique to the Ford F-150 Lightning, raising questions about the safety of Ford's BEVs. This has also directly led to a decline in consumer trust in Ford's electric vehicles, further weakening its position in the new energy vehicle market.
Ford's partnership with Changan.
In order to get out of the predicament, Ford chose to cooperate with Changan Automobile to establish a new joint venture in China. This decision is aimed at finding new development opportunities and hoping to find a foothold in the new energy vehicle market. The new joint venture plans to engage in the business of new energy passenger vehicles** of major brands, as well as the distribution of Ford brand models in which Changan Ford has already invested. This strategic realignment means that Ford is trying to adapt to changes in the market and find new growth points.
Ford chose to cooperate with Changan not only to find market share growth points, but also to get more support in new energy vehicle technology and market development. Changan Automobile has deep roots in the Chinese market and has a keen insight into the local market. Through the partnership with Changan, Ford hopes to better understand the characteristics of the Chinese market in order to develop products and strategies that are more in line with local needs. At the same time, it is also an effort for Ford to catch up in the field of new energy vehicles, and by leveraging Changan's resources and experience, it will quickly improve its competitiveness in China's new energy vehicle market.
The choice of diesel-electric hybrid technology.
Another of Ford's strategies in the field of new energy vehicles is to lean more towards diesel-electric hybrid technology. Compared with pure electric vehicles, hybrid vehicles can not only continue Ford's position in the field of fuel vehicles, but also respond to the society's demand for energy conservation and emission reduction. However, this also brings new challenges, with the plug-in hybrid market becoming increasingly competitive, with established competitors such as Toyota and Honda putting pressure on Ford in terms of technical prowess and popularity.