While attending the Wolfe Research virtual global auto technology conference yesterday, Ford CEO Jim Farley confirmed that Ford would not spin off its EV or internal combustion businesses.
Instead, the company will remove costs and ramp up for large-scale EV and software sales.
In an interview with Rod Lache, Farley was pretty candid. He noted that the company has too many people and too much complexity. While at the same time, he admitted that Ford does not have the expertise to transition to EVs.
Further to this, Farley said that it is a tough transition for the US automaker. Currently, Ford has 15 per cent of the market in the US, but to gain new clients, the need to make the buying process simple and efficient. Currently, Ford’s distribution costs $3,000 to $4,000 more than Tesla. (via APNews)
Farley also discussed ways Ford is looking to differentiate itself and strengthen their position. This includes doing online software updates for customers, securing access to lithium and nickel and developing a simplified Ford system.
Ford shares have lost about one-third of their value since the stock hit its 2022 high back on January 14. The market did not react well to the news, with shares dropping six per cent by this morning. The stock opened up at $16.00.