DETROIT (Michigan News Source) – As Ford continues to set the pace for new Electric Vehicle production rates, car sales have suffered, anticipating roughly $4.5 billion in losses according to the company.
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“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” said Ford CEO Jim Farley.
The company experienced second-quarter growth following the release of its new line of trucks, SUVs, and commercial vans, experiencing a 12% increase in revenue.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Farley said, “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
Since the beginning of Governor Gretchen Whitmer’s second term in office, increasing the number of EVs and other non-gas powered vehicles has been a priority, though becoming fully EV powered by 2030 is proving to be a tall order. A recent study from auto makers shows that the EVs on car lots are taking far longer to sell than their gas powered counterparts.
A study from Cox Automotive denotes that inventory of EVs is up more than 300% this year for more than 92,000 vehicles, but EVs are slow to move off the lot, sometimes sitting for over 300 days. At the most sluggish pace, it recorded the Genesis Electrified G80 selling after 350 days, the Hyundai Ioniq after 159 days, and the first Volkswagen AG’s EV vehicle – the ID.4 selling after 113 days.
One area that Ford may be able to pick up some sales is in California, among other states on the West Coast that have pledged to increase the number of EV sales within the next 15 years.
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Almost a year ago, California made a decision to ban the sales of new gas powered vehicles completely by 2035.
“California now has a groundbreaking, world-leading plan to achieve 100% zero-emission vehicle sales by 2035,” California Governor Gavin Newsom said after the decision. “It’s ambitious, it’s innovative, it’s the action we must take if we’re serious about leaving the planet better off for future generations.”
Michigan has allocated millions to promote the construction of Ford’s Blue Oval Battery Park Plant in Marshall anticipating that it would produce thousands of jobs and “generate more than $29.7 billion in personal income over 20 years.”
The EV losses come despite the Dearborn, MI based company reporting that it has the highest sales this past quarter for an American brand, increasing net sales more than 11% within the first six months of 2023.
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