Ford’s chief executive says he expects the cost of building electric vehicles to fall to the point that in coming years automakers will be battling each other for sales of EVs priced around $25,000…
Ford, like Tesla, may not have to buy advertising to sell EVs, which now amounts to $500 to $600 per vehicle, Farley said.
New EVs, he said, also will be designed for optimal aerodynamics so they can use the smallest possible battery to get more range. Redesigning the body of an electric full-size pickup truck for lower wind resistance can add 75 miles of range from the same size battery, Farley said. The additional range, he said, cuts another $3,000 from the battery cost, he said.
It all adds up to erasing the $25,000 cost difference and turning profits, even with raw material costs expected to rise, Farley said. Michelle Krebs, executive analyst with Cox Automotive, said Ford has a long way to go to reach the cost reductions that Farley outlined.Ford in recent years has had quality control issues with several of its new vehicles, raising costs.
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