Ford Is Reckoning With EVs’ Affordability Issues

Can the automaker lower the cost of its electric vehicles?

Ford EV fast charging
Fast charging is good, but pricing also goes a long way.

It’s been said before, but it bears repeating: there are significant barriers for the American auto market to overcome in order for EVs to be widely used. One of them relates to charging infrastructure; another has to do with the gulf between what buyers want and what actually exists. And there’s also the question of pricing, both in terms of an entry-level EV and in terms of driving sales to EVs at all as opposed to gas-powered or hybrid vehicles.

Now, Ford is taking a big step in addressing questions of its own vehicles’ pricing. Business Insider‘s Nora Naughton reports that the automaker sent a memo to its parts suppliers asking them to look into ways to cut costs — with the goal of making electric Fords more affordable.

This includes an openness to concepts that Ford may have previously vetoed, according to a report from Crain’s Detroit Business. The article quotes Ford supply chain head Liz Door making a holistic argument in favor of lowering prices. “We have all invested heavily in the success of the EV business, and we will all win or lose together,” Door reportedly wrote.

Ford confirmed the substance of this to Business Insider, with a spokesperson saying, “We value our suppliers’ collaboration and asked them to share their ideas for cost reductions.”

Are Americans Really Disappointed in EVs? We Asked 7 Owners.
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It’s too early yet to see what will come of this initiative — but it sounds like Ford is taking the challenges facing it (and the EV industry as a whole) with gravitas. In the end, this response is only one part of a larger process, and two big questions remain: will Ford succeed at getting EV costs down? And will consumers buy more of what they’re selling?

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