Ford and GM advance electric vehicle plans as profits rise
Ford executives last week said they were focused on scaling the E-Transit van and F-150 Lightning that will launch this spring, as well as improving margins on the Mustang. Chewed up.
“Our BEV margins are not where we intend them to be,” Ford chief financial officer John Lawler said. “We’re going to look at scale. We’re going to want to have a strong lineup that we can build on with key vehicles in high-volume segments…and we’re going to reduce complexity.”
Farley said Ford has a team dedicated to reducing EV BOM costs and was able to cut Mustang Mach-E costs by $1,000. Teams are looking at ways to rearrange the crossover on the fly, including reducing the number of hoses or other parts, he said.
Ford plans to increase production to around 100,000 Mach-Es this year, Farley said, and in 2023 it will work to build 150,000 electric F-150s.
For now, gains from the century-old internal combustion vehicle businesses of Ford and GM are propelling the companies toward their future promise. As the chip shortage eased, Ford’s U.S. market share rose, rising 1.3 percentage points year-over-year in January to 13.9%, according to the car manufacturer.
“ICE’s profitability is very important because it gives us the ability to not only scale BEV, but also vertically integrate BEV, which is becoming increasingly important for profit leverage,” said Farley. “We really want to push our ICE business as far as possible.”