He’s exactly right. What is the cost difference between a v8 drivetrain in a F150 and an ecoboost I4 in a Maverick? $2k? $5k? The difference between a small battery pack and a huge one is more like $20k to get the same range and performance. Thats a $20k premium (or more) on top of the actual vehicle cost. So whereas today there might be a $10k difference between a Ranger and f150, with EVs that might be $25k just for the larger size with no increase in range or performance.
The cost will come down over time but the difference remains. It’s an interesting dynamic.
I have a hunch Farley will be proven wrong about margins and customer preferences regarding EV's long term. Short term this may succeed, but Ford will have a ton of competition.
Part of Ford's quality nightmare because is the best and brightest in the company are all on the unprofitable EV side.
I'm sure they'll have a product there, maybe they just want to move on from Mach E branding, thus no second gen, but there'll be an adjacent product?
It'll be interesting to see where they source materials from though - I forsee screws getting tightened on all things Chinese.
Remember that the Mach-E was first announced in 2019 which means engineering probably started in 2016/2017. EV's were a brand new world back then and it made total sense to base an EV on an existing ICE platform. GM did the exact same thing with the first Chevy Bolt, which was based on the Cruze ICE platform. Live and learn as they say, which is what both Ford and GM have done.
It is a bit of hyperbole-they are building plants in North America using CATL as a partner along with LG (at BOC), so a Chinese and South Korean company.
One thing that would doom Dodge for sure would be if I buy a two door six pack when it becomes available. Every damn car I ever have owned has been discontinued except the Mustang and F150. It is a miracle they have survived considering my history. Thunderbird, Lincoln LS, Lincoln MKS, Lincoln Continental, Ranger Supercab, Taurus, BMW M550i..........I killed them all! 🤣
Which in turn means they've had years of experience with these products on the market. Meaning they've collected a lot of feedback and data from owners and reviewers that will serve to make the next generation of EVs even better.
What frustrates me is some insiders have hinted that there might not be a mach-e second generation, which would be a mistake imo. Despite the mach-e's shortcomings, it's sold fairly well for an initial EV effort. It stands to reason an even less compromised second gen mach-e would do quite well.
The smartest aspect of Ford's strategy was to focus on this idea of making their EVs aspirational. That's a theme that they should strive to carry into their CE1 EVs.