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Harley Lover

Farley: Ford to double EV production capacity in two years

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Within 24 months Ford Motor Co. plans to become the No. 2 maker of electric vehicles in the U.S. behind only Tesla with the capacity to produce 600,000 EVs per year. Once that occurs, Farley said Ford could challenge for the No. 1 spot.

The automaker’s 600,000-per-year global EV projection is double what it originally intended, CEO Jim Farley told Automotive News. The production would be spread among its first three EVs: the Mustang Mach-E, F-150 Lightning and E-Transit, and would come before its Blue Oval City campus in Tennessee comes online.

 

 

Farley essentially confirms a shift will be added at Cuautitlán, but that Lightning demand surprised everyone at Ford, and now they are seeking to boost output with another site:

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“In Lightning’s case we have to find physical space for more final assembly,” he said.

Farley says the number of F-150 Lightning reservations is now “approaching 200,000 units” and that he expects “north of 80 percent” of reservation holders to convert to actual sales. The vehicle is set to go on sale next year.

The article mentions the forthcoming Explorer and Aviator EV's, but the author doesn't connect the dots between these products and the added shift in Mexico.

 

Bottom line:

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“The demand is so much higher than we expected,” Farley said in an interview. “It’s a really new experience for this big company, trying to be agile. We had to approach it very differently than we’ve done capacity planning.”

“We’re kind of learning this new muscle after 118 years of ‘how do you scale’ and not have all the answers – in the middle of a chip crisis,” Farley said. “We’ll see how it plays out, but that’s what we’re targeting.”

 

https://www.autonews.com/manufacturing/ford-aims-double-ev-production-capacity-two-years-ceo-jim-farley-says?utm_source=daily&utm_medium=email&utm_campaign=20211118&utm_content=article3-headline

 

Edited by Harley Lover

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This is good news.  That's a lot of Mach-e and 150 Lightnings.  I wonder what other models will be BEV in next 2 years - Escape, Bronco Sport, Bronco, Mustang Coupe (2 door)???

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Most likely BEV versions of the Explorer and Aviator and then smaller BEVS starting in 2024 or so that would be made in OAP. 

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19 minutes ago, silvrsvt said:

Most likely BEV versions of the Explorer and Aviator and then smaller BEVS starting in 2024 or so that would be made in OAP. 

Lots of speculation at work as to when they’re actually gonna get shovels in the ground at OAC.  We were recently down two weeks then came back this week worked 4 days and we’re down today and next week again. I guess 2023 sometime so they can start slowly producing these mysterious BEV products at OAC. We only built Edges this week so this parts shitshow continues as we all know.

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18 minutes ago, Oacjay98 said:

Lots of speculation at work as to when they’re actually gonna get shovels in the ground at OAC.  We were recently down two weeks then came back this week worked 4 days and we’re down today and next week again. I guess 2023 sometime so they can start slowly producing these mysterious BEV products at OAC. We only built Edges this week so this parts shitshow continues as we all know.

 

I thought the Edge End of Production was in 2023 or 2024...remember seeing something about them only making AWD versions soon. 

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1 hour ago, llinthicum1 said:

This is good news.  That's a lot of Mach-e and 150 Lightnings.  I wonder what other models will be BEV in next 2 years - Escape, Bronco Sport, Bronco, Mustang Coupe (2 door)???

 

It's in the quotes from the article: "The automaker’s 600,000-per-year global EV projection is double what it originally intended, CEO Jim Farley told Automotive News. The production would be spread among its first three EVs: the Mustang Mach-E, F-150 Lightning and E-Transit"

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That’s what they say but it would be nice to hear a concrete date. We’re only building AWD Edge starting this 22 model year. We’re still building Nautilus but I guess no parts right now for Lincoln’s. 

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600k Mach E, Lightning, and Transit EV by 2023... before the Escape/Corsair come online at OAC and before the Explorer/Aviator come online at Tennessee. 

 

Ford is on pace to sell about 1.9 million vehicles in the US this year. Assuming the 600k BEV is all replacing ICE sales (probably not the case), Farley is saying Ford could reach more than 1/3 in BEV sales in 24 months. Before OAC and Tennessee come online and add another 400k volume.

 

Farley's got Tesla on his target, not GM or Toyota... 

Edited by bzcat

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31 minutes ago, bzcat said:

Farley's got Tesla on his target, not GM or Toyota... 

 

For sure bzcat sir. Last year shortly after Farley became Ford CEO, the only incumbent automaker he mentioned by name as Ford's biggest competition was Toyota (maybe because Farley used to work for Toyota). Tesla was the other company currently making cars that he mentioned by name. 

 

This is Farley's statement.

We know our competition today: It's Amazon, Baidu, Tesla, Apple, Toyota, and others

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1 hour ago, Oacjay98 said:

Lots of speculation at work as to when they’re actually gonna get shovels in the ground at OAC.  We were recently down two weeks then came back this week worked 4 days and we’re down today and next week again. I guess 2023 sometime so they can start slowly producing these mysterious BEV products at OAC. We only built Edges this week so this parts shitshow continues as we all know.


If the spending bill in DC gets signed in present form Oakville is done after Edge is done, as is the Canadian auto industry. Add in sky rocketing energy costs if line 5 gets shut down and Canada will be very different.

 

Edited by jasonj80

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I don’t think Oakville is done at all. If it ever does happen I hope Ford returns the 590 million they took from our governments and enjoys the bad press. Let’s not jump the gun here the situation will play itself out.  Ford changes their plans all the time so I won’t be surprised if our big little Canadian plant plans get altered. How do you know that they don’t have a reduced energy cost deal with the government. Ford already took the money so let’s see what they do. The Canadian auto industry isn’t done man. I don’t believe that shit.

Edited by Oacjay98

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1 hour ago, jasonj80 said:

 Add in sky rocketing energy costs if line 5 gets shut down and Canada will be very different......

 

Not just Canada.  I live in northern Michigan and Line 5 is where we get our propane.

Edited by mackinaw
typo

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48 minutes ago, Oacjay98 said:

I don’t think Oakville is done at all. If it ever does happen I hope Ford returns the 590 million they took from our governments and enjoys the bad press. Let’s not jump the gun here the situation will play itself out.  Ford changes their plans all the time so I won’t be surprised if our big little Canadian plant plans get altered. How do you know that they don’t have a reduced energy cost deal with the government. Ford already took the money so let’s see what they do. The Canadian auto industry isn’t done man. I don’t believe that shit.


The 550million  would be a one time quarter charge. 550 million is 44k vehicles with a 12,500 rebate. It doesn’t make financial sense to keep the plant open as it puts the vehicles at a massive competitive disadvantage on price. 

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1 hour ago, jasonj80 said:


The 550million  would be a one time quarter charge. 550 million is 44k vehicles with a 12,500 rebate. It doesn’t make financial sense to keep the plant open as it puts the vehicles at a massive competitive disadvantage on price. 

As far as I can tell, that money was offered to assist Ford’s future upgrades of Oakville and hasn’t been spent

and won’t be spent for another couple of years. 

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The Canadians are offering significant money to upgrade an existing plant with an established supplier network, so there’s a lot to consider from that Angle. As we know, Ford is intending to use the VW MEB toolkit as the basis for up to five new BEVs but they were timed in the second half of the decade, I think that Ford needs them much sooner than they thought and wouldn’t be surprised to hear a significant change on that front given the massive pull ahead on plans in the next couple of years.

 

Either way, Ford is spending a crap ton of cash to avoid missing out and losing buyers, that I expect extends to all of Ford’s BEV plans but how quickly can Ford get its ducks in a row?

Edited by jpd80

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4 hours ago, silvrsvt said:

 

I thought the Edge End of Production was in 2023 or 2024...remember seeing something about them only making AWD versions soon. 

 

1 hour ago, jasonj80 said:


The 550million  would be a one time quarter charge. 550 million is 44k vehicles with a 12,500 rebate. It doesn’t make financial sense to keep the plant open as it puts the vehicles at a massive competitive disadvantage on price. 

Not at all concerned with this theory. Let the chips fall where they may. You nor I know how this will play out.

Edited by Oacjay98

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2 hours ago, Oacjay98 said:

I don’t think Oakville is done at all. If it ever does happen I hope Ford returns the 590 million they took from our governments and enjoys the bad press. Let’s not jump the gun here the situation will play itself out.  Ford changes their plans all the time so I won’t be surprised if our big little Canadian plant plans get altered. How do you know that they don’t have a reduced energy cost deal with the government. Ford already took the money so let’s see what they do. The Canadian auto industry isn’t done man. I don’t believe that shit.

 

The big sticking point now is the human infrastructure bill passed by the house today. It says the $12,000 subsidy to BEVs goes to only American built with union labor. The Senate will probably change that, but for now Oakville is in limbo as builder of BEVs. 

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13 minutes ago, Oacjay98 said:

 

Not at all concerned with this theory. Let the chips fall where they may. You know or I know how this is gonna play out. I’m not gonna lose sleep over this one.

Hang in there mate, I have a feeling that Ford may bring forward its plans, they need BEVs sooner than they thought…

the amounts of BEVs being discussed now should give us quiet confidence that Canada is not being bypassed

Edited by jpd80

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Let ford and the governments figure it out. This is why I maintain Ford changes plans all the time. My question to all you guys is what about the Mexican plant? They’re ok but Oakville is fucked? Please.

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12 minutes ago, jpd80 said:

Hang in there mate, I have a feeling that Ford may bring forward its plans, they need BEVs sooner than they thought…

the amounts of BEVs being discussed now should give us quiet confidence that Canada is not being bypassed

I’m sure more clarity on Fords plans are forthcoming. I don’t think we will be bypassed at all. We’re limping along at OAC with parts shortage after parts shortage I see the downtime continuing on and off. We’ve been down 20 weeks this year already! 

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26 minutes ago, FordBuyer said:

 

The big sticking point now is the human infrastructure bill passed by the house today. It says the $12,000 subsidy to BEVs goes to only American built with union labor. The Senate will probably change that, but for now Oakville is in limbo as builder of BEVs. 

No, only $5,000 of that $12,000 applies to the unionised USA build. Vehicles built in Mexico or Canada can qualify for up to $7,000.

 

Remember, these are tax credits so the government won’t cut you a check for that amount, it reduces your taxable income, so it’s considerably less.

Edited by jpd80

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17 minutes ago, jpd80 said:

No, only $5,000 of that $12,000 applies to the unionised USA build. Vehicles built in Mexico or Canada can qualify for up to $7,000.

Farley will figure it all out. Thanks for the info

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12 minutes ago, Oacjay98 said:

Farley will figure it all out. Thanks for the info

The issue is that people think it’s a cash discount when it’s actually a tax credit….big difference

Edited by jpd80

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3 hours ago, jpd80 said:

No, only $5,000 of that $12,000 applies to the unionised USA build. Vehicles built in Mexico or Canada can qualify for up to $7,000.

 

Remember, these are tax credits so the government won’t cut you a check for that amount, it reduces your taxable income, so it’s considerably less.

It’s a credit, not a deduction….reduces the tax you owe by the amount of the credit.  No idea if the credit is refundable or if it can be split over multiple years.  It shouldn’t apply to vehicles with luxury car prices either, but it does.

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5 hours ago, mackinaw said:

 

Not just Canada.  I live in northern Michigan and Line 5 is where we get our propane.

Good luck.  Growing up in rural MN with propane heat, filling up the propane tank was a big deal.  Didn’t want to run out during a cold snap in January and have to pay a premium.

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