Ford Motor Co. F CEO Jim Farley drove through Europe in an electric vehicle in August and came back with several realizations including the need for a better charging infrastructure if EV adoption is to pick up pace in the U.S.
What Happened: Farley drove from Germany to Italy to meet with Ford Pro employees, dealers, customers, and upfitters in a new electric Ford E-Transit Custom and its plug-in hybrid variant in August, the CEO said in a note on Linkedin.
During the journey, the CEO experienced little issues with charging unlike during his journey on an EV across California last year, he said.
“One of the key reasons electric vehicle adoption has stalled in the U.S. is a lack of charging, especially for long distance drives. There's still more work to be done in Europe and bolder investment needed by policymakers to get to mass coverage, but I was excited by the existing charging options I saw and how reliable access lowers range anxiety,” the CEO said.
Farley also said that he realized customers want a range of powertrain solutions depending on their use of the vehicle. While some will stick to diesel and hybrids for the foreseeable future, some businesses are going electric to lower costs, he said.
The Ford CEO reiterated the company’s commitment to decarbonization in his note but added that hybrids, plug-in hybrids, and partially electric vehicles will “coexist with electric vehicles longer than anyone previously thought.”
Ford Pulls Back On EVs: Ford is now postponing previously stated EV timelines and has even dropped new products. Last month, Ford said that it is killing its plans to build a three-row electric SUV, initially slated for production in 2025. The company also postponed its plans for a new electric version of its F-150 pickup to 2027 and said it will start making a new electric commercial van in 2026.
More details on the company's EV strategy are now expected in the first half of 2025.
EV Financials: Ford’s EV segment recorded an earnings before interest and taxes (EBIT) loss of $1.14 billion in the second quarter owing to industry-wide pricing pressure and lower wholesales despite significant cost reductions in the segment.
For the whole year, Ford expects to incur a loss of $5 billion to $5.5 billion within the EV segment, called Model E.
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