Why Ford’s NEW Plan For Small, Cheap EVs Will FAIL!
With the stage of early adopters behind us the EV Market is cooling down and automakers are now figuring out ways how to attract average customers for them EVS are still way too expensive and inconvenient so Ford has to come up with an idea to offer something smaller and
Cheaper an EV for the masses on paper that seems like a good strategy but in reality there are too many obstacles that make us doubt that this could turn out as a successful project moreover we have found seven reasons why Ford’s new plan for small cheap EV will fail number seven
Growth is slowing down with the average EV purchase going over $50,000 it doesn’t surprise that the EV Market is cooling down the market is still growing but at a significantly slower Pace than most car makers that experts expected not so long ago the year-over-year growth was over 90% the last year ended
With a significant drop to 47% then there are projections for 2024 suggesting the market go up to 32% that’s still pretty impressive growth which could lead EVS to take 9% of the total new car market the problem is that both car makers and the government expected more car makers counted on much
Higher volume that would eventually lead to the point of making a profit on EVS which still isn’t the case on the other hand Biden’s Administration doesn’t give up on insisting on the new plan of EVS taking 23s of the new car market by 2032 to keep up with the plan Ford has
Finally decided to work on something that could potentially be accepted by the masses a small and affordable EV the only problem is that the current slow based growth could easily turn into a slow down by the time the new EV hits the market the blue oval company already
Cut down on the production of the F-150 Lightning and increased capacity for the production of gasar trucks like the Ranger and Bronco which is quite indicative some customers may be attracted by affordable prices but there are still too many deal-breaking aspects of electric cars that can be compensated
Only by affordable prices there are things like range and charging anxiety as well as reliability issues as the latest survey from Consumer Reports showed that EVS cause 80% more problems than gas powered cars number six Ford is losing money on EVS just like any other car maker including Tesla Ford is losing
Money on EVs and it’s losing a lot of it the latest reports showed that the blue oval company lost $47,000 on every EV it’s sold in the last quarter of 20123 which led to a total loss of $4.7 billion on electric cars in 2023 alone moreover the company expects to lose
Even more in 2024 around $5.5 billion simply said car makers still struggle to oper Mize production and make it cost effective on the other hand they’re forced to offer EVS with massive discounts just to keep things rolling in such a set of circumstances we don’t know how an affordable EV which is
Supposed to cost around $25,000 can turn things around to make such a vehicle profitable Ford will have to make so many compromises it could compromise on quality technology or a third other thing and with the current pace of the technological Advance we don’t see how such an affordable Eevee can surpass gas
Only and hybrid cars in terms of convenience Jim Farley already talked about the company’s secret team that’s been working on the new affordable EV platform and stated that the main focus is on cost and efficiency which gives us enough reason to worry about the quality of the final product considering that
Ford has already been among the least reliable car makers on the market number five can Ford really compete with Tesla and Chinese car makers all of our EV teams are ruthlessly focused on cost and efficiency in our EV products because the ultimate competition is going to be the affordable Tesla and the Chinese
Oems this is what Farley recently stated when he talked about the Skunk Works team that was formed a while ago to develop an affordable platform The Logical question is does Ford really have the capacity to compete with such companies in terms of cost Effectiveness on one side there’s Tesla the world’s
Leading EV maker and a company that takes nearly 60% of the US EV Market with such sales volume in mind as well as the technology it has as well as the experience in making EVS that spans over a decade we’re not sure if Ford can still offer the same level of quality
For the same money the austin-based company is also aware that the stage of early adopters looking for luxurious and high performance EVS is over so it also announced an affordable $25,000 EV the problem is that Ford won’t compete with Legacy car makers in this aspect but rather with new names in the business
Including those coming from the East there’s already a solid number of established EV makers such as byd G and mg that are taking over the global EV Market with our attractive prices and if we consider significantly lower labor costs as well as billions that the Chinese government has been pumping into
These companies we don’t see how Ford can offer an equally good product for the same asking price as its Chinese counterparts number four UAW contract while Ford is figuring out a new strategy for massive electrification which is all about making EVS more affordable there aren’t many things that
Currently go in favor of this plan we already talked about the massive loss on EV so big that the company was forced to delay 122 billion of EV Investments to save Capital but that’s just the beginning as additional costs are coming from other sides too one of them is the
Labor cost you’re probably familiar with the background of last year’s UAW strike so we won’t bother you with details the point is that the new contract between UAW and Ford has finally brought some wage increase around 33% over 4 and 1/2 years of course a wage increase means an
Increase in production cost that according to some estimations is now around $900 per vehicle in Ford’s case this means that Ford is now making less profit on its internal combustion Vehicles such as the F series and Explorer which already reflected in lower than expected earnings in the last
Quarter of the last year with a total profit of $813 million instead of the expected 866.563.4703 it is now facing big revisions and plans the original plant was to produce 400,000 batteries a year and now that number drops to 230,000 also according to the new plan only around 1,700 workers will be appointed
Instead of the initially planned 2500 except for lower production capacity and lower employment this part of the revision isn’t all that problematic what actually raised questions was Ford’s announcement to license technology from contemporary Amer technology company a company that’s been accused of being affiliated with the Chinese Communist party but despite instant Congressional
Inquiry Ford still expects to qualify for subsidies under the inflation reduction Act without these incentives there’s no room for any hope for the new affordable EV becoming successful number two hybrids are The Sweet Spot as the process of massive electrification is getting complicated more and more people
Are turning to hybrids as a more rational transitional step towards zero emissions hybrids are way cheaper way more reliable and way more convenient to own than Electric cars so it doesn’t surprise that the growth has been pretty impressive lately of course Toyota is still dominating the segment with nearly
700,000 hybrids sold in 2023 but Ford has been performing pretty well too thanks to a couple of hybrids at its lineup last year we saw a 25% jump and now experts estimate a 40% growth for 2024 more and more people are becoming aware of the strengths of classic hybrid
Setups especially when it comes to reliability and the ease of use furthermore they offer a lot in terms of practicality just take the m hybrid as an example with this practical pickup layout can afford design a $225,000 EV that’s as spacious and as practical not to mention convenient we’re not so sure
Number one Ford is still far away from producing affordable EVS development takes time and that’s probably Ford’s worst enemy because if you take a closer look at Farley’s words about the secret project which is about developing a new affordable EV platform there’s no word about the time frame which clearly
Indicates that although in development the new architecture is still far from the final stage we presume that Ford plans to build more than one vehicle on this platform so there are probably a lot of things to be done especially when it comes to the adoption of the latest
Tech goodies with all that in mind it’s obvious that Ford needs more time meanwhile Rivals like Tesla and Chinese companies probably have the capacity to roll out such vehicles at a much quicker base in other words by the time Ford launches the new $225,000 EV it may be
Too late thanks for watching and see you next time
Why Ford’s NEW Plan For Small, Cheap EVs Will FAIL! Ford CEO Faces His Biggest EV Disaster Yet, so Ford Came Up with a New EV Plan. Ford CEO Jim Farley is indeed very worried about the situation with EVs. Famous automotive analysts are forecasting an EV collapse and Ford is already losing billions on EVs. Jim Farley has decided to temporarily reduce the EV budget and hope that the new EV plan will work. But will the electric vehicle plan succeed or is it doomed to fail? This video dives into the heart of Ford’s controversial strategy for small, affordable electric cars. We’ll explore the potential pitfalls and the factors that could make or break this move in the EV car industry. Stay tuned, you don’t want to miss this!
▬▬▬▬▬▬▬▬▬▬▬▬▬▬
🎬Watch our most recent video:
🔴 80% of Dealers Hate Biden’s EV Strategy and Refuse to Sell EVs WATCH HERE 👉 https://youtu.be/sOWHKsvSsJc
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
🤑For business queries, please contact us ➜ chasecarcars@protonmail.com
▬▬▬▬▬▬▬▬▬▬▬▬▬▬
😊 Hey guys! We created the Chase Car channel to give viewers a broad overview of the upcoming new cars from the top car manufacturers. We are huge fans of pickup trucks of all sizes: compact, mid-size and full-size trucks. So mostly, we will cover new upcoming trucks, but besides that, here you can find a lot of content about new sedans and SUVs too.
The Electric Vehicle wave sooner or later will become huge, so this type of content might appear on this channel from time to time. But as we are still on the way to becoming fully electrical, we mostly cover fossil cars from many amazing brands.
#evs
#evnews
#evcars
