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Ford CEO sees electric vehicle price war as EV costs decline

Jim Farley
Posted at 10:39 AM, Jun 02, 2022
and last updated 2022-06-02 10:39:21-04

DETROIT (AP) — Ford’s chief executive says the global auto industry is headed for a huge price war in the coming years as electric vehicle costs drop and companies sell EVs priced around $25,000.

CEO Jim Farley told the Bernstein Strategic Decisions Conference on Wednesday that the $25,000 electric vehicle will democratize EVs.

Currently it costs way more to build an EV than one with a gas engine. But Farley said big cost reductions are coming with new battery chemistries that use fewer precious metals such as nickel and cobalt.

Plus, he said EVs will take less time and labor to build, saving more money. Ford also plans to cut distribution and advertising costs.

The first of the next-generation electric vehicles at Ford will be ready in 2026, Farley said, as Ford refits older factories to build EVs and builds three new battery plants and one new assembly plant in Kentucky and Tennessee, he said. By then, the company will have lined up the needed raw materials and have new battery chemistry, he said.