Facing low consumer interest in electric vehicles, Ford is calling for government support to revitalize its EV strategy.
At a Glance
- Ford’s “Freedom of Choice” ad campaign promotes customer options between ICE, hybrid, and EV models.
- Company chairman Bill Ford insists Ford won’t force EV adoption.
- Ford seeks UK government assistance to boost EV sales amid low demand.
- Government mandates require increasing percentages of zero-emission car sales.
Ford’s EV Strategy Struggles Amid Low Demand
Ford is encountering significant challenges as it steers towards an electric future, contending with lukewarm market interest. Despite its ambitious plans, the company finds itself asking for government aid to make EVs more appealing to consumers. Ford hopes for incentives and infrastructure improvements to jumpstart public adoption of electric cars. The automaker’s new “Freedom of Choice” campaign underscored the variety of vehicle options available, from traditional internal combustion engines to hybrids and full electric models.
Bill Ford, the company’s chairman, insisted however that customers should not be forced into purchasing EVs. Electric vehicles “would require enormous batteries and you know, and they still wouldn’t have the towing capability that a lot of the Super Duty drivers would demand. We’re not shoving anything down anybody’s throat,” Ford said.
NOBODY WANTS EVs: Ford Delays New Electric Vehicle Production By Years, Will Allow 'Market to Develop'https://t.co/dg7KTaR9X1
— Sean Hannity 🇺🇸 (@seanhannity) April 5, 2024
UK Mandates and Industry Tensions
Efforts to increase electric vehicle adoption have intensified tensions between the UK government and the automotive industry. Current mandates require a rising percentage of car sales to be zero-emission, with substantial penalties for non-compliance. These mandates pose additional challenges for automakers like Ford, already grappling with declining demand. Ford seeks government support as incentives are seen as more effective than mandates to stimulate market interest. Without such intervention, industry leaders like Lisa Brankin, Ford UK’s chair, believe these requirements are unattainable.
Ford UK’s recent pleas to the government for consumer incentives highlight how significant investments in electrification are at risk without growing consumer demand. As the market struggles with competition from cheaper Chinese EVs, workforce reductions loom, with Ford planning to cut 800 UK jobs over the coming years. The closure of Stellantis’ plant in Luton, affecting 1,100 jobs, further exemplifies the precarious position of automakers relying on governmental intervention to meet ambitious zero-emission goals.
Not true. Nobody is being forced to buy an EV. Car companies are being required to supply an increasing amount of EVs over time so consumers can have the choice of buying them. The question is: why do legacy car companies want to focus on gas guzzlers? #EVs #cdnpoli
— Timothy Gray (@CanadaGray) November 20, 2024
Market and Industry Impact
Ford anticipates a rise in hybrid vehicle sales, with plans to expand electrified powertrain options by 2030, except for its Super Duty trucks, which will take longer due to technological challenges. In the battle against emerging foreign competitors and government mandates, Ford remains committed to launching affordable EV models, including a planned $25,000 crossover by 2026. However, executing such strategies hinges heavily on supportive policies and consumer-driven demand.
