Ford Motor Company’s CEO, Jim Farley, has warned of a potentially bleak future for electric vehicles (EVs) in the United States. He believes policy changes under President Trump, specifically the elimination of a $US7500 consumer tax credit and relaxed emissions rules, will significantly dampen EV demand. Farley predicts the share of zero-emission vehicles, currently around 10 per cent of the US market, could fall by half. He stated that he “wouldn’t be surprised if EV sales in the US go down to 5 per cent.”
Farley’s assessment highlights the rapidly shifting landscape of the automotive industry. Many major manufacturers are reportedly delaying EV production plans and redirecting investments towards internal combustion engine and hybrid vehicles. Ford has emphasized consumer choice in fuel types while also adjusting its EV strategy to focus on lower-cost vehicles. Ford Motor Company is a global automotive manufacturer, producing a wide range of cars, trucks, and SUVs. The company also provides financial services through Ford Motor Credit Company.
Ford’s electric vehicle unit, Model-e, experienced a loss of approximately $US1.3 billion in the second quarter and the company projects potential EV losses of up to $US5.5 billion this year. The company’s US EV sales decreased by 31 per cent in the quarter, impacted by older models and a temporary sales halt of the electric Mustang Mach-e due to a safety recall.
Farley sees greater potential in “partial electrification,” such as gas-electric hybrids. He suggested that pure EVs are best suited for commuter vehicles making “short runs”, representing only 5 per cent to 7 per cent of the market. Ford is considering adding hybrid production capabilities to its existing battery and EV plants.
