The American automotive industry is going through the largest shift in its business since its inception. Back in January, General Motors announced that they are targeting to sell exclusively electric vehicles by 2035, before going carbon neutral as a company in 2040. A little less than a month later, the Ford Motor Company stated that their entire product line in Europe will be made up of electric vehicles by 2030. This announcement from Ford raised questions about their future plans here in the United States. Well, following the debut of the Mustang Mach-E, the F-150 Lightning, and E-Transit models, their intentions aren’t entirely hidden. Ford plans to spend $22 billion on electrification through 2025, and that more EVs are in the pipeline. Thanks to a new report from Automotive News, we now have more information about the automaker’s plans for electrification in the States.
A Ford All Electric Future?
Kumar Galhotra, Ford’s president of the Americas and international markets group, said in an interview with Automotive News that the timeline is so solidified at this point that it can easily be observed as “here’s the date where we’d be all electric,” and that the company is “certainly working toward it.”
Now it is worth noting that Galhotra did not give any hints as to when this sort of bombshell announcement would come from the automaker. Regardless, it is clear that Ford is putting a ton of eggs into the EV basket, not unlike their hometown rivals. While there is no denying that much of this push is coming as a result of pressures in foreign markets like Europe, Galhotra did note that he expects a similar situation to take place here in the States.
That does, in effect, confirm an electric Ford Mustang coupe that’s been reportedly debuting by the end of the decade.
“The two markets are in a very different place,” said Galhotra. “As that market was maturing and moving in Europe, it was clear at what point we’d be all-electric. I suspect the same thing is happening here; we’re just not at that point.”
Skeptical EV Adoption
The United States is certainly behind Europe in terms of EV adoption, though attitudes are changing. An OC&C Strategy Consultants study found that 45 percent of U.S. buyers will consider an electric vehicle when it’s time to purchase a new car. Only 28 percent of respondents had considered an EV before the purchase of their current vehicle at the time of the study. Furthermore, 16 percent said they will definitely be purchasing a battery-powered machine. That figure is up a staggering 10 percent from just one year ago.
There is a sticking point however, as 69 percent of respondents said they are unwilling to spend up to $500 more for an EV alternative when compared to an ICE-powered offering. Ford appears to be listening to these folks however, as the new F-150 Lighting is priced more in line with other Ford trucks than the recent outpouring of electric pickups. Starting at $39,974 in work-truck spec, the Ford F-150 Lightning is nearly three times cheaper than the GMC Hummer EV. Even the $52,974 F-150 Lightning XLT is a relatively normal priced pickup these days. This was an intentional move by the automaker, as Ford CEO Jim Farley told reporters last week that this will help truly gauge where we are in terms of EV adoption nationwide. To that end, the automaker received over 20,000 reservations for the truck in just 12 hours.
A Major Business Decision From Ford
So then the Ford Motor Company is indeed looking at the possibility of an all-electric product line in the United States. Based on the remarks by the company’s executives however, it is clear that Ford wants the customer base to be in place before embarking on such a massive transition. If folks aren’t willing to buy these vehicles, it serves the automaker no benefit to chase after the segment. That said, regulations could also become a major factor moving forwards. For now though, it seems folks just need to put their money where their mouths are on either side of the electric vehicle spectrum.