Ford CEO Farley Discusses EV Strategy Amid Price Cuts, Tariffs

During Ford's recent Q4 earnings call, CEO Jim Farley emphasized the company's commitment to electric vehicle (EV) development, highlighting that affordable small- and medium-sized trucks are key to EV adoption. Farley noted the challenges of larger EVs, stating that retail customers are hesitant to pay a premium for these models, which require expensive batteries due to their heavier weight and aerodynamics. The Ford Model e division reported a significant EBIT loss of $5.1 billion, despite cost improvements and investment in new battery plants. Farley also discussed the potential impact of tariffs on vehicle production, urging a comprehensive approach to tariffs rather than selective measures that could disadvantage Ford compared to competitors like Hyundai and Toyota. He warned that prolonged tariffs could lead to billions in lost profits and necessitate major production strategy shifts. Overall, Ford is navigating a challenging landscape with its EV strategy amid fluctuating market conditions and regulatory uncertainties.