Ford Motor Co. CEO Jim Farley recently completed a European road trip in an electric vehicle, providing valuable insights into the current state of EV adoption and the challenges facing the industry. Farley traveled from Germany to Italy in an electric Ford E-Transit Custom and its plug-in hybrid variant, meeting with Ford Pro employees, dealers, customers, and upfitters along the way.
During the trip, Farley experienced minimal charging issues, a stark contrast to his EV journey across California last year. This led him to conclude that a lack of adequate charging infrastructure, particularly for long-distance drives, is a key factor hindering widespread EV adoption in the United States. While acknowledging progress in Europe, Farley emphasizes the need for bolder policy investments to expand charging networks and achieve mass coverage.
The trip also revealed a growing trend among customers, who desire a range of powertrain solutions to suit their specific needs. While some remain committed to diesel and hybrid vehicles, others are embracing electric options to reduce costs. Farley recognizes this dynamic, stating that Ford will offer a diverse portfolio of powertrain options, including hybrid, plug-in hybrid, and fully electric vehicles, acknowledging their long-term coexistence.
Despite its commitment to decarbonization, Ford has recently adjusted its EV timelines and product plans. The company has postponed the launch of a three-row electric SUV initially slated for 2025 and pushed back the introduction of an electric version of its F-150 pickup to 2027. Ford also announced that it will begin production of a new electric commercial van in 2026. A more comprehensive update on the company’s EV strategy is expected in the first half of 2025.
Ford’s EV segment, known as Model E, experienced an EBIT loss of $1.14 billion in the second quarter due to industry-wide pricing pressure and lower wholesales. The company anticipates a loss of $5 billion to $5.5 billion in the EV segment for the entire year. Despite the challenges, Ford remains dedicated to its EV journey, adapting its approach to navigate the evolving market dynamics and accelerate the transition to a more sustainable future.
