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Ford CEO Jim Farley has declared that large electric vehicles (EVs) present “unresolvable” economic issues, particularly for pickup trucks and SUVs, during the company’s fourth-quarter earnings call. According to InsideEVs, Farley highlighted that these vehicles’ heavy weight and poor aerodynamics necessitate costly, large batteries, making them less appealing for retail customers and not justifying the premium pricing.
Farley's remarks come as Ford adjusts its strategy amidst a slowdown in the electric vehicle market. The base price of electric trucks, such as the F-150 Lightning, starts at approximately $62,995, while larger models like the GMC Sierra EV begin at about $89,995. He noted that these larger EVs struggle to match the efficiency of smaller models, with some achieving as low as 1.5 miles per kilowatt-hour.
As a result, Ford plans to focus on developing small to medium-sized electric vehicles, alongside maintaining an electric power line for commercial trucks. “Retail customers have shown that they will not pay any premium for these large EVs, making them a really tough business case,” Farley stated.