EVs may not reach cost parity with gasoline cars until after 2030, Ford CEO Jim Farley said Wednesday.
Speaking at an investor conference, Farley said that, for most automakers, EVs will remain more expensive to produce than internal combustion cars into the end of the decade, Reuters reports, adding that this contradicts analyst predictions that EVs will cost as much as petrol cars. . achievable by 2025.
2025 Ford 3-row SUV –
Farley predicts that when second and third generation models are introduced between 2030 and 2035, EV costs will decrease due to “significantly lower labor content” that simplifies manufacturing and requires fewer parts, as well as smaller battery packs, reiterating points made made before. year.
Farley also said automakers could save more money by switching to online sales, and generate additional revenue from “new software-based digital services,” according to Reuters.
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EV battery costs are taking a wrong turn by 2022, potentially extending the time before EVs and internal combustion vehicles reach cost parity. At the same time, market constraints have fueled an EV price war.
In the meantime, that may mean that some automakers are choosing not to compete in a segment where they can’t see positive margins any time soon. But as Consumer Reports suggests, those who don’t participate may lose market share they can’t recover. So while this may be a very transformative period in mobility history, many serious manufacturing hurdles and financial challenges must be resolved first.
