Jump to content

Ford CEO says customers are not interested in $75,000 EVs


Recommended Posts

https://finance.yahoo.com/news/ford-ceo-says-customers-are-not-interested-in-75000-evs-110019792.html

 

Quote

"We've learned ... people are not willing to pay [a] $30,000 premium for that big battery on a [$50,000], $60,000 utility," Farley told Yahoo Finance at Ford's Accelerate Pro conference in Detroit, Mich. "But they're willing to buy a $30,000 EV if they save $2,000 a year compared to gas costs."

 

Link to comment
Share on other sites

The collapse of Cybertruck orders was a sobering moment, as was the current modest sales volume of Lightning 

 

Farley is a bit like the character, Toad from the wind in the willows, always rushing from one fad to another….

 

I would caution people regarding the new big thing, Ford is only gearing up for Mid Sized BEV because it saves them a lot o money, not because it’s what buyers want and don’t think you’ll see that bargain price on arrival, we’ve been through that before

Edited by jpd80
  • Like 3
Link to comment
Share on other sites

Well, apparently nobody should be interested in buying any us manufactured EVs either.  Why would they when your own CEO suggest they suck compared to the Chinese. This guy is unbelievable.   
 
Ford CEO Jim Farley Says Tesla, GM, And Blue Oval Are No Match For Chinese
Link to comment
Share on other sites

Chinese market is very different and heavily influenced by the government,

strong BEV sales means the power comes from locally generated electricity,

not imported gasoline and diesel plus, it presents as breaking from big oil…

 

Also, China has been basically funding a National competition to find the 

strongest BEV companies that deserve to survive, roll them out across the

country, then rest of world markets, first main stop is Europe but at some 

time, they are gonna try to get into the US market, even with strong tariffs 

they may be prepared to “buy” the market….already starting in Australia.

Link to comment
Share on other sites

15 hours ago, tbone said:
Well, apparently nobody should be interested in buying any us manufactured EVs either.  Why would they when your own CEO suggest they suck compared to the Chinese. This guy is unbelievable.   
 
Ford CEO Jim Farley Says Tesla, GM, And Blue Oval Are No Match For Chinese


Because A - they’re not sold here and B - he expects CE1 to fix that.

  • Like 1
Link to comment
Share on other sites

Farley mentioned innovation and lower costs.  If not for our import restrictions, would any GM, Tesla, or Ford vehicle including upcoming CE1 be able to compete with sub $15k Seagull and similar?  I realize it’s a subjective issue, but I think most people/buyers are biased towards low costs over features that are not necessary, at least until cost of such features become increasingly low.  IMO Tesla’s FSD is a good example on market acceptance, or lack thereof.  I personally like that Farley has recently made reference to vehicles needing to be simpler.  Can’t agree more, though at same time know some buyers want all the gadgets they can afford. Must be tough for manufacturers given buyers appear polarized on what a vehicle should be, and not just technology.

Link to comment
Share on other sites

23 minutes ago, Rick73 said:

Farley mentioned innovation and lower costs.  If not for our import restrictions, would any GM, Tesla, or Ford vehicle including upcoming CE1 be able to compete with sub $15k Seagull and similar?


Thats a non starter.  You can’t build and sell a $15k BEV without huge government subsidies.  That’s why Chinese tariffs and restrictions are necessary - it’s not a level playing field.  Within China they all get subsidies so it’s level there but not for exports. 
 

It would be like the government giving Tesla $20k per vehicle and asking Ford and GM to compete with that.

  • Like 1
Link to comment
Share on other sites

16 minutes ago, akirby said:


Thats a non starter.  You can’t build and sell a $15k BEV without huge government subsidies.  That’s why Chinese tariffs and restrictions are necessary - it’s not a level playing field.  Within China they all get subsidies so it’s level there but not for exports. 
 

It would be like the government giving Tesla $20k per vehicle and asking Ford and GM to compete with that.


That’s definitely part of the issue but not the entire story in my opinion.  At top of story tbone linked in his post, there’s a picture of a BYD Seagull which seems appropriate for the subject matter.  The Seagull is apparently very popular in many world markets, probably because it’s basic transportation at an affordable price.  In other words it provides good value to budget minded buyers.  Setting aside tariffs and other restrictions for a second, why do US manufacturers not build a “Seagull” equivalent for North America?  The answer is always the same, that there’s no demand, right?  But if that’s the case, why worry about a Chinese vehicle that won’t sell anyway?  

 

Chinese government subsidies are part of issue, but I also believe Chinese auto manufacturers are willing to compete with vehicles that American manufacturers don’t want to have to build.  Reasonable tariffs can compensate for price disparity but do US manufacturers want Seagull-type vehicles sold well under $20k?  Maybe US manufacturers want to only sell more expensive vehicles with higher profit margins and don’t want Chinese to compete in N.A. at all regardless of properly-adjusted prices.

 

I agree government subsidies play a role but don’t see how that alone explains as an example how a Fiat 500e should cost twice as much as a BYD Seagull of roughly similar size and capabilities (I’m assuming after hefty tariff on Seagull).  Granted Fiat may be a better car but buyers should have option to choose how much “better” they want to pay for.  Just a different perspective on why we fear Chinese competition.

Link to comment
Share on other sites

2 minutes ago, Rick73 said:


That’s definitely part of the issue but not the entire story in my opinion.  At top of story tbone linked in his post, there’s a picture of a BYD Seagull which seems appropriate for the subject matter.  The Seagull is apparently very popular in many world markets, probably because it’s basic transportation at an affordable price.  In other words it provides good value to budget minded buyers.  Setting aside tariffs and other restrictions for a second, why do US manufacturers not build a “Seagull” equivalent for North America?  The answer is always the same, that there’s no demand, right?  But if that’s the case, why worry about a Chinese vehicle that won’t sell anyway?  

 

Chinese government subsidies are part of issue, but I also believe Chinese auto manufacturers are willing to compete with vehicles that American manufacturers don’t want to have to build.  Reasonable tariffs can compensate for price disparity but do US manufacturers want Seagull-type vehicles sold well under $20k?  Maybe US manufacturers want to only sell more expensive vehicles with higher profit margins and don’t want Chinese to compete in N.A. at all regardless of properly-adjusted prices.

 

I agree government subsidies play a role but don’t see how that alone explains as an example how a Fiat 500e should cost twice as much as a BYD Seagull of roughly similar size and capabilities (I’m assuming after hefty tariff on Seagull).  Granted Fiat may be a better car but buyers should have option to choose how much “better” they want to pay for.  Just a different perspective on why we fear Chinese competition.

 

I don't recall where the link was - I'm pretty sure it was posted here somewhere, but i remember reading that Chinese dealers are actually waaaay overproducing and giving vehicles away for like half off.

 

This isn't the article, but it talks about some of it.

 

https://www.cnn.com/2025/09/26/cars/chinese-electric-cars-price-wars-intl-hnk-dst

 

Also, the measures aren't against the car nobody wants, it's for the other models.

Link to comment
Share on other sites

5 hours ago, Rick73 said:

Farley mentioned innovation and lower costs.  If not for our import restrictions, would any GM, Tesla, or Ford vehicle including upcoming CE1 be able to compete with sub $15k Seagull and similar? 

By the way, in most export markets the BYD Seagull starts higher than $15K USD. An average starting price for the Seagull in South America is $20,000. In Europe the average starting price for the Seagull (where it's been renamed Dolphin Surf) is $26,000. In the Philippines the Seagull starts at under $16,000 because of the excise tax exemption for BEVs.

BYD Seagull is roughly the size of a Mitsubishi Mirage hatchback, it's just a bit shorter in length and a tad wider and taller.

PS: PHEV & eREV models of BYD are also responsible for the rapid growth of the Chinese brand.

Edited by AM222
Link to comment
Share on other sites

6 hours ago, akirby said:


Because A - they’re not sold here and B - he expects CE1 to fix that.

I admire the hell out of his approach. He could stand there pounding his chest saying Ford is perfect, and none of their rivals can come close to them. But that mentality would only lead to Ford falling further behind. 

 

Actually giving credit to your competition, and openly stating where your company needs to improve, how you can better your products and the way you develop them, that's how you win. We're so used to seeing these leaders lie, or hide stuff from us, Farley doing the opposite is a strength, not a weakness. 

  • Like 2
Link to comment
Share on other sites

4 hours ago, rmc523 said:

Also, the measures aren't against the car nobody wants, it's for the other models.


Yeah, though other higher-cost Chinese models already have American counterparts to compete except on price, which can be handled with reasonable tariffs to offset their government incentives.  It’s when tariffs are so high that they essentially prevent any and all competition that the issue gets messy.  Anyway, my point remains that our manufacturers may not want super low cost electric vehicles in our market at all for fear of possible disruption.

Link to comment
Share on other sites

11 minutes ago, AM222 said:

By the way, in most export markets the BYD Seagull starts higher than $15K USD. An average starting price for the Seagull in South America is $20,000. In Europe the average starting price for the Seagull (where it's been renamed Dolphin Surf) is $26,000. In the Philippines it starts at under $16,000 because of the excise tax exemption for BEVs.

BYD Seagull is roughly the size of a Mitsubishi Mirage hatchback, it's just a bit shorter in length and a tad wider and taller.

 

I’m  aware it’s higher cost, but does that $20k price reflect their actual cost or is it a result of most countries limiting import through tariffs or other means?  The Seagull’s price is so low in their own market that it would seem its volume is being limited by other governments.  Not sure how price ends up doubling, more or less.  I’ll have to see price once they have been manufactured in Brazil for a while, as an example, where some speculate price may drop from imported $20k to around $16k for Brazilian made.

Link to comment
Share on other sites

1 hour ago, DeluxeStang said:

Actually giving credit to your competition, and openly stating where your company needs to improve, how you can better your products and the way you develop them, that's how you win. We're so used to seeing these leaders lie, or hide stuff from us, Farley doing the opposite is a strength, not a weakness. 

I agree. Farley also did this with Tesla and developed a respectful relationship with Musk. This was an important factor with Ford being the first to gain access to the Tesla charging infrastructure.

  • Like 1
Link to comment
Share on other sites

1 hour ago, Rick73 said:

 

I’m  aware it’s higher cost, but does that $20k price reflect their actual cost or is it a result of most countries limiting import through tariffs or other means?  The Seagull’s price is so low in their own market that it would seem its volume is being limited by other governments.  Not sure how price ends up doubling, more or less.  I’ll have to see price once they have been manufactured in Brazil for a while, as an example, where some speculate price may drop from imported $20k to around $16k for Brazilian made.

It is not only about price and Chinese government subsidies. There are also valid security concerns with the Chinese software embedded in these internet connected vehicles. There are legitimate concerns of per-positioned malware in Chinese products. Solar panels in Japan are currently being investigated for this same issue. 

Edited by Texasota
Link to comment
Share on other sites

6 hours ago, Rick73 said:


That’s definitely part of the issue but not the entire story in my opinion.  At top of story tbone linked in his post, there’s a picture of a BYD Seagull which seems appropriate for the subject matter.  The Seagull is apparently very popular in many world markets, probably because it’s basic transportation at an affordable price.  In other words it provides good value to budget minded buyers.  Setting aside tariffs and other restrictions for a second, why do US manufacturers not build a “Seagull” equivalent for North America?  The answer is always the same, that there’s no demand, right?  But if that’s the case, why worry about a Chinese vehicle that won’t sell anyway?  

 

Chinese government subsidies are part of issue, but I also believe Chinese auto manufacturers are willing to compete with vehicles that American manufacturers don’t want to have to build.  Reasonable tariffs can compensate for price disparity but do US manufacturers want Seagull-type vehicles sold well under $20k?  Maybe US manufacturers want to only sell more expensive vehicles with higher profit margins and don’t want Chinese to compete in N.A. at all regardless of properly-adjusted prices.

 

I agree government subsidies play a role but don’t see how that alone explains as an example how a Fiat 500e should cost twice as much as a BYD Seagull of roughly similar size and capabilities (I’m assuming after hefty tariff on Seagull).  Granted Fiat may be a better car but buyers should have option to choose how much “better” they want to pay for.  Just a different perspective on why we fear Chinese competition.


 

Americans don’t want tiny cars.  The only reason they sell (in any volume) is if they’re dirt cheap like the Nissan Versa.  But there is little to no profit in such a vehicle so why devote factory space and resources to that if you can build and sell larger vehicles that people want to buy.

Link to comment
Share on other sites

2 hours ago, Rick73 said:

 

I’m  aware it’s higher cost, but does that $20k price reflect their actual cost or is it a result of most countries limiting import through tariffs or other means?  The Seagull’s price is so low in their own market that it would seem its volume is being limited by other governments.  Not sure how price ends up doubling, more or less.  I’ll have to see price once they have been manufactured in Brazil for a while, as an example, where some speculate price may drop from imported $20k to around $16k for Brazilian made.

I believe prices have import tariffs. 

Models like the Mirage-sized Seagull is probably considered too small by 21st century US standards though. Not sure if Ford would go this route in North America, but it would make sense everywhere else around the world.
 
The popular Atto 3 on the other hand is BYD's BEV crossover that's roughly the same size as a Corolla Cross; in Australia it costs about as much as a Corolla Cross hybrid.
Converted to USD, the Atto 3 prices in Australia ranges from US$26,380 to US$29,695.
500px-2025_BYD_Atto_3_Extended.jpg

Edited by AM222
Link to comment
Share on other sites

6 hours ago, DeluxeStang said:

I admire the hell out of his approach. He could stand there pounding his chest saying Ford is perfect, and none of their rivals can come close to them. But that mentality would only lead to Ford falling further behind. 

 

Actually giving credit to your competition, and openly stating where your company needs to improve, how you can better your products and the way you develop them, that's how you win. We're so used to seeing these leaders lie, or hide stuff from us, Farley doing the opposite is a strength, not a weakness. 


You can show your adversaries respect without taking a shit on your own company and thus your employees.  Farley has done this multiple times.  If Ford is “no match” for the Chinese, he should step down since he has been in charge for five years.  

  • Haha 1
Link to comment
Share on other sites

24 minutes ago, tbone said:


You can show your adversaries respect without taking a shit on your own company and thus your employees.  Farley has done this multiple times.  If Ford is “no match” for the Chinese, he should step down since he has been in charge for five years.  

This isn't how I see it. Openly saying our rivals have advantages over us in certain areas, we need to do better, isn't shitting on your company, it's wanting your company to be the best it can be. The Chinese brands are objectively the best brands at the moment when it comes to EVs, specifically affordable EVs, it's not even up for debate. 

 

But he's doing something about it. It would be one thing if he was just saying "Yeah we suck, oh well, nothing we can do about it" that would piss me off. But what he's actually saying is "Our competition has an advantage here, here, and here, here's the changes we're making as a company to close that gap". He's identifying the problem, and making decisions to rectify in. 

  • Like 1
Link to comment
Share on other sites

56 minutes ago, tbone said:


You can show your adversaries respect without taking a shit on your own company and thus your employees.  Farley has done this multiple times.  If Ford is “no match” for the Chinese, he should step down since he has been in charge for five years.  


He means currently and he’s already working on the solution.  It would be different if he just said oh well we can’t do it.

  • Like 1
Link to comment
Share on other sites

15 hours ago, DeluxeStang said:

This isn't how I see it. Openly saying our rivals have advantages over us in certain areas, we need to do better, isn't shitting on your company, it's wanting your company to be the best it can be. The Chinese brands are objectively the best brands at the moment when it comes to EVs, specifically affordable EVs, it's not even up for debate. 

 

But he's doing something about it. It would be one thing if he was just saying "Yeah we suck, oh well, nothing we can do about it" that would piss me off. But what he's actually saying is "Our competition has an advantage here, here, and here, here's the changes we're making as a company to close that gap". He's identifying the problem, and making decisions to rectify in. 


I understand your perspective, and I’m not disputing that he is trying to take steps to close that gap, but as I’m sure you’re aware, in today’s society there is a large number of the population that won’t read past the headline. Farley regularly uses hyperbolic wording against his own company that hits the headlines, which may have context in the body of the story, but people never see. I’m suggesting he chooses his words more carefully.

Link to comment
Share on other sites

1 hour ago, tbone said:


I understand your perspective, and I’m not disputing that he is trying to take steps to close that gap, but as I’m sure you’re aware, in today’s society there is a large number of the population that won’t read past the headline. Farley regularly uses hyperbolic wording against his own company that hits the headlines, which may have context in the body of the story, but people never see. I’m suggesting he chooses his words more carefully.

It’s called “tough love”. And it usually gets fantastic results.

Link to comment
Share on other sites

It’s the same movie again, Ford has an unbelievable new thing that will start at $40k,

many want to believe it and falls in love with the new best thing, then reality sets in…….

 

then Ford wonders where all the reservations went when the price jumps to $56k…..

Edited by jpd80
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...