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Ford Decides to Double Production Plan for EVs

Ford announced this week a plan to double its electric vehicle production.

The company originally planned to build 300,000 units by 2023, but has ramped that number up to 600,000. Additionally, the company has secured a semiconductor contract with GlobalFoundries to support the manufacturing plan.

Chief Executive Jim Farley tweeted his excitement for the plan, which is to become the second-largest EV producer in the world “within the next couple years.” Farley expects the Mustang Mach-E, F-150 Lightning, and E-Transit van to lead the company’s sales of EVs. He also hinted that the company has plans for additional electric models.

While doubling production to 600,000 EVs is a strong commitment it represents just 10% of Ford’s current production. The company has said it hopes for EVs to make up 40% of sales by 2030.

Boeingpilot

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Oct 11, 2018
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It's not the cars... it's the infrastructure. I love my S. Is it the finest built car on the road, no. But, if I'm going EV, I can actually use this thing pretty much like my ICE vehicle. Why... because there is a wide ranging charging infrastructure that Tesla invested in.

While Tesla continues to invest in this, except for perhaps VAG, no one else is building out a real infrastructure of fast DC charging. The vast majority are putting their eggs in the EA basket.

Tesla has shown, EVs are more than golf carts. Now the rest of the industry has to come to grips that adoption requires infrastructure.
 

jboy210

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Dec 2, 2016
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It's not the cars... it's the infrastructure. I love my S. Is it the finest built car on the road, no. But, if I'm going EV, I can actually use this thing pretty much like my ICE vehicle. Why... because there is a wide ranging charging infrastructure that Tesla invested in.

While Tesla continues to invest in this, except for perhaps VAG, no one else is building out a real infrastructure of fast DC charging. The vast majority are putting their eggs in the EA basket.

Tesla has shown, EVs are more than golf carts. Now the rest of the industry has to come to grips that adoption requires infrastructure.
Tesla is being very smart and disruptive.

Tesla is a car manufacturer. But, they are also an Energy company. Tesla will replace Exxon/Mobil, Chevron, Sinclair, Shell, and others in the vehicle energy space. One can imagine every electron powering most vehicles coming from the Tesla Solar energy pipeline.
 
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Ogre

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Sep 6, 2021
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At least they are a bit more realistic than Mary Barra.

Ford has somehow managed to at least give the appearance of being way ahead of GM in spite of GM having a 5 year head start.
 

stcptl

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Oct 6, 2021
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600,000 is quite significant and actually not bad for 2023 considering they’ve only just started selling the Mach-E. If they can keep growing their EV sales at that rate, won’t be long before they make a couple of million EVs a year. A lot of IFs though.
 

Ogre

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Sep 6, 2021
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600,000 is quite significant and actually not bad for 2023 considering they’ve only just started selling the Mach-E. If they can keep growing their EV sales at that rate, won’t be long before they make a couple of million EVs a year. A lot of IFs though.
Pretty big gap between announcing a target and hitting it.

I’d be more impressed if Ford announced they’d come to an agreement to source a huge amount of batteries.
 
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alexgr

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Aug 13, 2019
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600,000 is quite significant and actually not bad for 2023 considering they’ve only just started selling the Mach-E. If they can keep growing their EV sales at that rate, won’t be long before they make a couple of million EVs a year. A lot of IFs though.
The problem is that the Mach-E deliveries started almost a year ago and Ford is growing neither deliveries nor production. If they are flat for the entire year, what is exactly their plan to grow by at least 12 times in the next 2 years? I am very skeptical.
 
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Ogre

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The problem is that the Mach-E deliveries started almost a year ago and Ford is growing neither deliveries nor production. If they are flat for the entire year, what is exactly their plan to grow by at least 12 times in the next 2 years? I am very skeptical.
The Mach E illustrated Ford’s whole problem with scaling for these companies.

Their margins on the Mach E are slim to negative. Increasing production doesn’t alleviate that. As Musk suggested, they need to change the wheels and engine while they are going 85 MPH. The only way they can get to being profitable on EVs is to do what took Tesla 5-10 years to do. Until they can figure that out and execute on it, Ford is going to struggle to just break even on EVs. The best EV and battery engineers are working for Tesla or have created their own startups by now and have little interest in jumping ship to Ford.

They need to build up volume selling large numbers of EVs **likely at a loss** for at least a couple years while they figure this out.
 
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T3SLAROD

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May 14, 2019
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The Mach E illustrated Ford’s whole problem with scaling for these companies.

Their margins on the Mach E are slim to negative. Increasing production doesn’t alleviate that. As Musk suggested, they need to change the wheels and engine while they are going 85 MPH. The only way they can get to being profitable on EVs is to do what took Tesla 5-10 years to do. Until they can figure that out and execute on it, Ford is going to struggle to just break even on EVs. The best EV and battery engineers are working for Tesla or have created their own startups by now and have little interest in jumping ship to Ford.

They need to build up volume selling large numbers of EVs **likely at a loss** for at least a couple years while they figure this out.

What exactly did Tesla figure out to make profit? I am curious to know.
 

alexgr

Active Member
Aug 13, 2019
1,183
1,194
42
The Mach E illustrated Ford’s whole problem with scaling for these companies.

Their margins on the Mach E are slim to negative. Increasing production doesn’t alleviate that. As Musk suggested, they need to change the wheels and engine while they are going 85 MPH. The only way they can get to being profitable on EVs is to do what took Tesla 5-10 years to do. Until they can figure that out and execute on it, Ford is going to struggle to just break even on EVs. The best EV and battery engineers are working for Tesla or have created their own startups by now and have little interest in jumping ship to Ford.

They need to build up volume selling large numbers of EVs **likely at a loss** for at least a couple years while they figure this out.
And in the best spirit of accelerating transition to EVs, Ford has unveiled today a new 2023 diesel Ranger.
 
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