Ford wants to only sell EVs online in the future to reduce costs
Electric Ford cars will in future only be sold online and at fixed prices, says CEO Jim Farley. For example, the company wants to make more profit on electric cars. Farley thinks that various manufacturers will release EVs around $25,000 because of falling costs.
Electric vehicle costs fall in coming years and a ‘massive price war’ will follow, says Farley according to ABC News. The CEO expects competition to be especially fierce in EVs around $ 25,000. Converted, this is more than 23,000 euros. It is not clear whether Farley also refers to the European market; due to, for example, import costs and taxes, prices may differ between the European and American markets. It is also not clear what kind of term Farley is thinking about.
Farley does say that the materials to produce an EV will cost about $18,000. Now the production of EVs is a lot more expensive; The Mustang Mach-E’s battery alone costs $18,000. Production prices are falling, according to Farley, because of refurbished batteries that contain cheaper and less scarce precious metals. Less nickel and cobalt is then used. In addition, Farley says it will take less time and be less labor intensive to produce EVs. This can reduce the price of electric cars.
To further reduce costs, Ford also wants to change the dealer model. He wants with non-negotiable prices according to TechCrunch achieve profit margins that match those of Tesla. According to Farley, there will be no stock available at car dealerships in the future. The electric cars will be delivered directly to the customer. “We need to move to a non-negotiable price. We need to go 100 percent online so inventory goes straight to the customer with 100 percent collection and remote delivery.”
It is not yet known when Ford will switch to full online sales. It is also unclear when the ‘price war’ should take place. There is already a price war in China, says Farley. More than half of the world’s electric vehicles are sold in that country. Wuling’s most popular car, a mini EV, costs around $8,000. Ford isn’t the only automaker looking to sell its cars online; Volvo also wants to do this from 2030.