Ford has signalled that it will back away from competing with EV giants such as BYD and Tesla for its second generation of EVs, due from 2025, as it targets more profitable niches in response to an increasingly crowded field.
Ford CEO Jim Farley told analysts at the American giant's recent capital markets day that it saw in advance how tough the five-seat electric SUV market was going to be.
“If your EV strategy depends on a two-row crossover right now, you better have the [low] cost of BYD to compete,” he said. “We knew that freight train was coming.
“We don’t see ourselves competing with Tesla and BYD in our second cycle product,” Farley said. “If you do the math with competitors, they aren't betting on those segments."
Ford will instead focus on a pick-up truck and a three-row SUV for its second generation of EVs.
Farley also threw out the names of Chinese companies Geely, SAIC and Changan as other rivals that Ford is keen to avoid as it focuses on the 8% profit margin target for its Model E electric division by 2026.
Ford compared its forthcoming electric seven-seater to today's vast Expedition, although reports from the US say it will probably be a size down from that to create an electric equivalent of the ever-popular Explorer.
Ford described this seven-seat electric SUV as a “personal bullet train” and touted a 350-mile range from a 100kWh battery. It added that this would have been 150kWh if it hadn’t worked hard on efficiency, including aerodynamics.
“There’s a bit of an arms race in the industry to shove bigger and bigger batteries in EV to try to make them like ICE vehicles,” said Doug Field, head of advanced development at Ford. “But the real battle ground is efficiency. That’s God’s work. We will optimise efficiency, not compromise it.”
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