Ford wants to sell EVs only online in the future to cut costs
Ford electric 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 several manufacturers will release EVs of around $25,000 due to falling costs.
Electric vehicle costs will fall in the coming years and a ‘massive price war’ will follow, says Farley according to ABC News† The CEO expects competition to become especially fierce with EVs around $25,000. Converted this is more than 23,000 euros. It is not clear whether Farley is also referring to the European market by this; Due to import costs and taxes, for example, prices may differ between the European and the American market. It is also not clear what term Farley is thinking of.
Farley does say that the materials to make an EV will cost about $18,000. Now the production of EVs is a lot more expensive; The battery of the Mustang Mach-E alone costs $18,000. Production prices are falling, according to Farley, because of upgraded 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 less labor to produce EVs. This can reduce the price of electric cars.
To further reduce costs, Ford also wants to change the dealer model. With non-negotiable prices he wants according to TechCrunch achieve profit margins that match Tesla’s. According to Farley, there will be no more stock at car dealerships in the future. The electric cars will be delivered directly to the customer. “We need to get to a non-negotiable price. We need to go 100 percent online so the 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 talk of 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 about $8,000. Ford isn’t the only automaker looking to sell its cars online; Volvo also wants to do this from 2030.