Ford expects 10% North America revenues from electric

US Big Three auto producer and sheet consumer Ford plans to eventually reap 10% of its North American revenue from electric vehicles, Kallanish learns from the company’s third-quarter conference call. 

Ceo Jim Farley told analysts during the call that Ford’s strategy is being undergirded by cap-ex investments and a big-volume strategy. 

“There’s been a lot written about the electrification of our industry and Ford’s bet is different,” he says. “We’re betting on a full lineup of commercial electrified vehicles. We’re building a plant at the Rouge. We’ve been the number one nameplate in US industry. We sell over one million F-series [light trucks]. We have an enormous customer base who are looking to reduce the cost and so I’m not going to get into forecasting the volumes, but we really see in this first inning of electrification – and it’ll be a long game that plays out over many years – that we have tremendous volume opportunity.”

Farley adds that Ford doesn’t plan to pursue the “$100,000-plus market,” like ostensible competitors Lucid and – until recently – Tesla. 

“These are affordable vehicles,” he says, naming a range between $20,000-70,000. “We’re talking about these vehicles being 10% plus of the revenue pool in North America at their price. So they look great financially for us. But I guess we aren’t looking at electrification for the propulsion. We think the real change here is the connectivity, and to run a business based on the data.”