Latest news with #Jim Farley
Daily Mail
12 hours ago
- Automotive
- Daily Mail
Ford stuns with 'Model T moment' for its electric cars
Ford is unveiling a new EV that it is calling its 'next Model T moment' - which will be be made entirely in the US. The mid-size pickup truck is expected to hit dealerships in 2027 for around $30,000. Ford said the unnamed truck will be built on an all new, American-made battery platform in Louisville, Kentucky. It will be first time an EV, by any manufacturer, has been powered with mostly US-based materials. Normally, critical minerals are imported - often from China. 'There are no guarantees with this project,' CEO Jim Farley said. 'It is a bet, there is risk.' The truck, built with lithium-iron phosphate batteries, is a complete departure from previous US-assembled EVs. Ford said it made a huge investment to complete the project. The automaker spent $2 billion to rework the factory and plans to hire 2,200 full-time workers. Ford's share price fell on the news, with Wall Street worried about the vast cost of such a commitment. This is a breaking news story.
Daily Mail
5 days ago
- Automotive
- Daily Mail
Gas guzzlers making comeback amid Trump's push to exile EVs
American gas-powered vehicles, including the country's iconic pickup trucks, will not vanish forever as drivers have turned their backs on EVs. The surge in gas guzzlers is due to Donald Trump's push to exile EVs so the nation's auto industry can thrive - especially in Detroit, the 'car capital' of the world. US automakers are going back to their roots after switching their focus to electric vehicles that first became popular in 2010, and gained more notice in recent years. Although EVs are meant to be better for the planet, car manufacturers have had to use more resources to keep up with the fuel-efficient standards. Ford, a top US car brand based out of Detroit, is already gearing up for the shift and changing its lineup by adding more commercial vehicles and large SUVs and taking out some EVs. 'This is a multibillion-dollar opportunity over the next couple of years,' Jim Farley, the Chief Executive of Ford Motors, said in a call with analysts last week. Trump's car policy changes came after he announced a 25 percent tariff on imported cars that came into effect in April. Most electric cars sold in the US are already built domestically, meaning they won't be affected by the tariff. Still, there are costs associated with EVs that companies have to front. Because of the push to move back to gas cars, the auto industry is looking up because the fees that come with EVs will start to lower. With EVs, the industry has to pay regulatory credits and fuel-economy rule-violation fines. Ford, GM and Stellantis - a Dutch automaker - have shelled out about $10 billion on regulatory credits and fuel-economy rule-violation fines since 2022, according to The Wall Street Journal. Although General Motors has hoped to get rid of internal combustion engines by 2035, the company has since changed its tune and told its investors there are benefits to keeping gas cars in the lineup. During a recent call, Stellantis, who owns car companies like Jeep and Toyota, highlighted how Trump's Big Beautiful Bill allows them to add more gas-powered vehicles to the mix on dealership lots. 'This will mean to us a lot of additional profit,' Antonio Filosa, the CEO of Stellantis, who started the position in June, said. In a July 29 memo reviewed by WSJ, Stellantis wrote that they would prefer to satisfy its customers demands over anything. 'In these uncertain times of heavy competition and tariffs, there are auto workers all over the world who would happily trade their uncertainty for our customer demand and company commitment,' the company stated. In recent months, Stellantis, which also owns Ram, has been dealing with part shortages. Just last week, the automaker had to add shifts to a factory in Michigan in a bid to speed up production for its famed Ram 1500 trucks. Although the set back was not specifically related to the regulatory charges, Stellantis will thrive from the surge in gas cars by not having to pay millions for fines and fuel-economy rule violations. In order to see how the new trend will affect the company, Stellantis plans to keep an eye on the production conflict at the Ram Michigan factory regularly. Companies aren't the only ones excited about the change, as dealerships are also on board. 'Americans do like buying giant vehicles,' Adam Lee, chairman of Maine-based Lee Auto Malls, told the outlet. 'They're going to see how many more giant SUVs they can pump out, because they sell a lot of them and make a lot of money on them.' Despite being excited, Lee said he hopes some EVs will still remain. 'Otherwise, we're going to find out we're the only country in the world not embracing fuel-efficient vehicles and EVs,' he said. With the change, several big brands have back-pedaled with their EV plans as they anticipate the shift. Mary Barra, the CEO of GM, originally planned to make the company fully EV in 10 years, but now she is mulling the idea that gas-powered cars could come back into play. With that, her company continues to roll out EV cars, as she thinks the change will actually give GM a chance to sell more of those vehicles. 'It also gives us the opportunity to sell EV vehicles,' Barra stated while on a recent earnings call. 'Excuse me, ICE vehicles, for longer and appreciate the profitability of those vehicles.'
Daily Mail
5 days ago
- Automotive
- Daily Mail
American icon whose popularity has surged under Trump as drivers shun EVs
American gas-powered vehicles, including the country's iconic pickup trucks, will not vanish forever as drivers have turned their backs on EVs. The surge in gas guzzlers is due to Donald Trump's push to exile EVs so the nation's auto industry can thrive - especially in Detroit, the 'car capital' of the world. US automakers are going back to their roots after switching their focus to electric vehicles that first became popular in 2010, and gained more notice in recent years. Although EVs are meant to be better for the planet, car manufacturers have had to use more resources to keep up with the fuel-efficient standards. Ford, a top US car brand based out of Detroit, is already gearing up for the shift and changing its lineup by adding more commercial vehicles and large SUVs and taking out some EVs. 'This is a multibillion-dollar opportunity over the next couple of years,' Jim Farley, the Chief Executive of Ford Motors, said in a call with analysts last week. Trump's car policy changes came after he announced a 25 percent tariff on imported cars that came into effect in April. Most electric cars sold in the US are already built domestically, meaning they won't be affected by the tariff. Still, there are costs associated with EVs that companies have to front. Because of the push to move back to gas cars, the auto industry is looking up because the fees that come with EVs will start to lower. With EVs, the industry has to pay regulatory credits and fuel-economy rule-violation fines. Ford, GM and Stellantis - a Dutch automaker - have shelled out about $10 billion on regulatory credits and fuel-economy rule-violation fines since 2022, according to The Wall Street Journal. Although General Motors has hoped to get rid of internal combustion engines by 2035, the company has since changed its tune and told its investors there are benefits to keeping gas cars in the lineup. During a recent call, Stellantis, who owns car companies like Jeep and Toyota, highlighted how Trump's Big Beautiful Bill allows them to add more gas-powered vehicles to the mix on dealership lots. 'This will mean to us a lot of additional profit,' Antonio Filosa, the CEO of Stellantis, who started the position in June, said. In a July 29 memo reviewed by WSJ, Stellantis wrote that they would prefer to satisfy its customers demands over anything. 'In these uncertain times of heavy competition and tariffs, there are auto workers all over the world who would happily trade their uncertainty for our customer demand and company commitment,' the company stated. In recent months, Stellantis, which also owns Ram, has been dealing with part shortages. Just last week, the automaker had to add shifts to a factory in Michigan in a bid to speed up production for its famed Ram 1500 trucks. Although the set back was not specifically related to the regulatory charges, Stellantis will thrive from the surge in gas cars by not having to pay millions for fines and fuel-economy rule violations. In order to see how the new trend will affect the company, Stellantis plans to keep an eye on the production conflict at the Ram Michigan factory regularly. Companies aren't the only ones excited about the change, as dealerships are also on board. 'Americans do like buying giant vehicles,' Adam Lee, chairman of Maine-based Lee Auto Malls, told the outlet. 'They're going to see how many more giant SUVs they can pump out, because they sell a lot of them and make a lot of money on them.' Despite being excited, Lee said he hopes some EVs will still remain. 'Otherwise, we're going to find out we're the only country in the world not embracing fuel-efficient vehicles and EVs,' he said. With the change, several big brands have back-pedaled with their EV plans as they anticipate the shift. Mary Barra, the CEO of GM, originally planned to make the company fully EV in 10 years, but now she is mulling the idea that gas-powered cars could come back into play. With that, her company continues to roll out EV cars, as she thinks the change will actually give GM a chance to sell more of those vehicles. 'It also gives us the opportunity to sell EV vehicles,' Barra stated while on a recent earnings call.
Auto Blog
02-08-2025
- Automotive
- Auto Blog
Ford CEO Says Its Newest EVs Are Ready for Its 'Model T Moment'
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. The Macan will return with gas power, only it won't be the Macan at all. Ford's 'Model T moment' is coming August 11, CEO says During Ford's second-quarter earnings call with investors on the evening of July 30, Ford CEO Jim Farley revealed that the automaker is set to reveal its new strategy centered around a new line of electric vehicles underpinned by a new platform. In his remarks, Farley said that the future plans would be a 'Model T moment,' referring to the 120-year-old model that was the world's first mass-produced, affordable car. He hinted at a transformative breakthrough that would help position Ford to sell a new line of electric cars aimed at competing against low-cost Chinese models from known names like BYD. Previous Pause Next Unmute 0:00 / 0:09 Full screen 2024 Kia EV6 GT-Line review: Is this the EV that will convert you? Watch More 'On Aug. 11, that will be a big day for all of us at Ford. We will be in Kentucky to share more about our plans to design and build a breakthrough electric vehicle and a platform in the U.S.,' Farley said. 'This is a Model-T moment for us at Ford. A chance to bring a new family of vehicles to the world that offer incredible technology, efficiency, space, and features.' Source: Getty Images By providing your email address, you agree that it may be used pursuant to Arena Group's Privacy Policy. Ford views the Chinese auto giants as its new competitors In the past, the Ford CEO admitted his admiration for his Chinese competition. Late last year, he revealed on a podcast appearance that he daily drove a Xiaomi SU7 that Ford used for benchmarking, adding that he was having a hard time giving it up. On the earnings call with Wall Street insiders, he acknowledged that Ford is falling behind its East Asian rivals, pegging them as their new competition to beat. Farley noted to the investors and Wall Street insiders listening in that the next EVs developed by its internal California-based 'Skunkworks division' are set to be released within 'the next year or two — starting,' adding that its strategy against its Chinese counterparts 'is to go and really push ourselves to radically reengineer and transform our engineering, supply chain and manufacturing process.' 'We really see, not the global (automakers) as our competitive set for our next generation of EVs, we see the Chinese. Companies like Geely, BYD,' Farley said. 'That's how we built our vehicle. How we've engineered what kind of supply chain we've used and the kind of low content in our manufacturing.' Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Ford F-150 Lightning — Source: Getty Images Ford is banking on its supply chain, gas and electric car flexibility Despite this, Farley's announcement underscores that Ford has yet to make any money selling its electric vehicles. Its internal 'Model e' division, which is dedicated solely to EVs, has been hemorrhaging money for several quarters. During Q2 2025, Ford reported that the Model e division lost $1.3 billion, a worse quarter than the division's loss of $1.1 billion just a year earlier. Farley told the Wall Street analysts on July 30 that over the past three years, the automaker saw EV consumer demand and government regulations and support rapidly change, which pushed it to think carefully about its next moves. As part of its new EV strategy, Ford's CEO said it will offer EVs in select body styles in segments where it 'can actually make money on EVs.' Source: Getty Images Another part of that strategy is its investment in LFP, or lithium-iron-phosphate batteries —a cheaper, longer-lasting form of EV battery, particularly used in Chinese-market electric vehicles. Starting next year, it plans to build them at the BlueOval Battery Park in Marshall, Michigan, which he touts as 'a big advantage for the company.' But despite this, Ford feels that its investment in EVs is part of a larger lineup puzzle, which includes gas-powered cars like hybrids and extended range electric vehicles. 'We think that's a much better move than a $60,000 to $70,000 all-electric crossover,' Farley said. 'We think [offering a variety of powertrains] is really what customers are going to want long term, and we're investing a lot in more durable internal combustion engine powertrains.' FInal thoughts This development feels like a preview of the end result of something that Farley and his Blue Oval engineers have been working on since he and other Ford executives learned of the level of innovation that Chinese automakers were capable of. In a September 2024 profile written by Mike Colias and published by The Wall Street Journal, Farley was described less as a traditional businessman than as a hands-on executive obsessed with his competition. The piece centered around a trip to China in 2023, during which Farley and other Ford executives got the full picture of their Chinese competition. According to the Journal, Farley's fascination with Chinese automakers began when he and Ford CFO John Lawler test-drove an electric SUV made by Changan, Ford's joint venture partner in China. 'Jim, this is nothing like before,' Lawler said to Farley after the drive, per the Journal. 'These guys are ahead of us.' In light of the signing of the 'Big Beautiful Bill' and its provisions against EVs, Ford's EV announcement comes at an interesting time. Nonetheless, I wonder what kind of vehicle Farley will reveal in Kentucky come August 11. About the Author James Ochoa View Profile
