Ford plans to cut electric car costs with new batteries. But the sale price of the cars should not decrease for as much. The manufacturer reveals in passing its production plan until 2026 and plans to sell no less than 2 million electric vehicles per year.
Like all generalist manufacturers, Ford will also have to switch to all-electric. And for good reason, the European Commission banned the sale of thermal cars from 2035 a few weeks ago. the firm with the blue oval will have to submit to this measure.
In fact, Ford has already planned everything. Indeed, the brand has already announced a few months ago its desire to offer all its range of connected vehicles from 2030 in Europe. This should be done gradually since in 2026, all models in the range will be offered in plug-in hybrid or electric. An advanced date to 2024 for utilities. In 2035, Ford will only sell electric vehicles in Europe. But that doesn’t mean any future price cuts for electric cars.
600,000 electric cars sold in 2023
In a press release, Ford details its new plan for the future, and announces its ambitions. And the least we can say is that they are very large. Indeed, the Dearborn firm plans to produce no less than 600,000 electric vehicles by the end of 2023. Among them, 270,000 Mustang Mach-E for North America, Europe and the China, 150,000 F-150 Lightning for the United States alone or 150,000 electric utility vehicles, all models combined, for North America and Europe. Added to this are 30,000 copies ofan all-new trendy SUV destined for Europe. If we still know very little about it, it should notably be based on Volkswagen’s MEB platform.
In effect, the two manufacturers have entered into a partnership in 2020, concerning the development of utility and electric models. If Ford’s press release does not give additional details, an electric version of the Puma is also under development, which should see the light of day by 2025. But the firm wants to go even further, when it announces that it is planning to produce no less than two million electric vehicles worldwide every year by 2026. By way of comparison, the American manufacturer sold just under two million cars, all engines combined, in 2021.
$50 billion investment
To achieve this goal, Ford has entered into strategic agreements with the Chinese equipment supplier CATL, in order to accelerate the production of LFP batteries and to obtain an annual capacity of 60 gigawatt hours (GWh) by 2023. As the press release points out, the brand has already sourced 70% of the battery production capacity needed to be able to produce two million electric cars a year.
An upcoming price drop for the Mustang Mach-E?
Ford also points out that lithium iron phosphate (LFP) battery packs will be fitted to Mustang Mach-Es sold in North America next year, as well as the F-150 Lightning in early 2024. This type of technology is particularly acclaimed for its extended lifespan, for its less polluting production due to the absence of cobalt, but also for its lower price and lower recharging speed.
Ford thus announces a reduction in material costs of around 10 to 15% using an LFP battery instead of the current NMC of the Ford Mustang Mach-E and Ford F-150 Lightning. But nothing says that the manufacturer will lower the price of its cars contrary to what some media write, especially since the price drop does not concern the production price but the purchase price of the materials!
The drop in production costs should therefore be much lower and not result in a lower bill for the customer. But potentially by slightly higher profits, as Porsche wishes thanks to the transition to 100% electric.
Carbon neutrality: 2035 objective
In addition, Ford continues to work on its objective of carbon neutrality in Europe, which it wishes to achieve by 2035. For this, the brand plans in particular to modernize its infrastructures in order to save more than 2,000 tonnes of CO2 and more than 2,600 MWh of energy per year. The manufacturer also predicts that “ more than half of its global production will consist of electric vehicles by 2030 and that it will achieve global carbon neutrality no later than 2050“. To do this, Ford announces a massive investment of 50 billion dollars until 2026.
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