Categories: News

Ford CEO kicks in open door: ‘There will be a price war! Electric cars are getting cheap

‘Well duh!’, we would say if we were American, because Ford CEO Jim Farley kicks in a very open door. “There’s a huge price war coming up,” he says. As the production costs of electric cars continue to fall, the magic price of 25,000 dollars (or euros) is in sight.

Car manufacturers will compete fiercely on price, thinks Ford director Jim Farley. As a result, the electric car is within reach for more and more people. Major cost savings are on the way, especially in battery technology. New batteries, for example, will contain a lot less precious metals, such as nickel and cobalt. In addition, Ford plans to downsize its dealer network and sell more cars online, saving several thousand dollars per car. Farley also wants to cut back on advertising and marketing, he told ABC News.

Ford CEO Jim Farley wants EV production costs to be $18,000

Furthermore, the Ford CEO thinks that electric cars will require fewer large batteries in the future. By making the body as aerodynamic as possible, an EV becomes more efficient and requires less battery capacity for the same range. Also saves 3000 dollars, Farley calculates. All those ‘small’ savings should make electric vehicles more affordable for customers. Farley wants the cost to about $18,000 so Ford can sell an EV for $25,000. That will be an immense challenge, he admits.

New Ford electric models are on Volkswagen’s MEB platform

Farley, of course, has a point with his cost strategy. The biggest obstacle for potential electric car buyers is the hefty price. Ford has announced a major electric offensive for Europe. Already this year, the brand is presenting a new, medium-sized electric crossover. Two more models will be added next year. It will also have a thick Volkswagen stamp, because Ford has entered into a partnership with its German competitor. For example, the new plug-in Fords are simply on the Volkswagen MEB platform.

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