Brace yourselves, fellow conservatives, as Ford CEO Jim Farley has dropped a bombshell that could rattle the very core of American car enthusiasts. At the recent Aspen Ideas Festival, Farley had the audacity to advocate for smaller vehicles, claiming they are crucial for the future of electric vehicles (EVs) and society in general.
Farley’s audacious assertion boils down to this: If companies like Ford are to thrive in the EV market, Americans must abandon their cherished affinity for large vehicles. “We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption,” Farley declared. He even dared to criticize our nation’s love for big trucks and SUVs, despite confessing his personal fondness for these powerful machines.
It seems Ford is hell-bent on emulating Disney or Bud Light. But we’re not buying it!
During Ford’s second-quarter earnings call on July 24, Farley doubled down on his stance, explaining why he thinks smaller cars make sense for American buyers, especially in the context of EVs. Historically, Ford has thrived on the sale of larger vehicles, which bring higher profit margins. However, according to Farley, this business model doesn’t translate well to EVs. The most expensive component of EVs is the battery, and achieving the desired 300+ mile range requires larger, more costly batteries for bigger vehicles.
In Farley’s words, “The larger the vehicle, the bigger the battery, the more pressure on margins because customers will not pay a premium for those larger batteries.” He further emphasized that smaller batteries significantly reduce costs and improve margins, allowing for more affordable EV options, potentially as low as $30,000, with the aid of the IRA tax credit.
Farley also attempted to dispel misconceptions about Ford’s strategy for smaller cars. He assured that Ford is not planning to build tiny, cramped vehicles. Instead, he claims that the absence of an engine and drivetrain in EVs allows even smaller vehicles to offer surprisingly spacious interiors. “With no engine or drivetrain, a smaller vehicle can have a much roomier package, actually the interior package of a class above with a small silhouette. That’s a big advantage for customers versus ICE,” Farley noted.
Despite Farley’s misplaced enthusiasm for smaller cars, American preferences still lean heavily towards larger vehicles. Data from Kelley Blue Book reveals that in 2024, eight of the top ten best-selling vehicles were pickup trucks and SUVs, with only the Honda Civic and Toyota Camry representing more compact options.
Farley acknowledges this reality but remains stubbornly optimistic. Ford plans to make strategic decisions about which vehicles to produce, including continuing investments in larger models. Recently, Ford announced a $2.3 billion investment to revamp its Oakville Assembly Complex in Ontario, Canada, to increase production of the Super Duty pickup truck. However, this has delayed the release of a planned three-row electric SUV until 2027.
Under Farley’s misguided leadership, Ford reported a staggering $1.1 billion loss in its EV business for the second quarter of 2024.
Final Thoughts: Farley’s comments reveal a disturbing trend among left-leaning elites who are out of touch with everyday Americans. While they preach about the importance of EVs and smaller vehicles, they fail to understand that our love for large vehicles is deeply rooted in our culture and way of life. It’s not about size; it’s about freedom, power, and the American dream. And no CEO, no matter how influential, can take that away from us.
Source: POTUSPaper
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