Diana Furchtgott-Roth, an economist at the Heritage Foundation, discusses the electric vehicle market as more automakers withdraw from EV production.
The CEOs of major U.S. automakers Ford and GM said Thursday they are considering a partnership to lower the cost of electric vehicle technology to compete with lower-cost Chinese EVs with an eye on U.S. and European markets. He indicated that he was prepared to do so.
“If there’s a way we can partner with other companies, especially on non-consumer technology, and use R&D and capital more efficiently, we’re all for it.” GM CEO Mary Barra He spoke to investors at a conference hosted by Wolf Research.
Ford CEO Jim Farley Another presentation at Thursday’s conference also opened the door to collaboration with other automakers on reducing the cost of EV batteries.
The Detroit company and other Western automakers face increasing competition from BYD and China’s low-cost EV makers, which are increasingly exporting cars to Europe, Latin America and Southeast Asia.
Ford’s profits are eaten up by EVS
Ford CEO Jim Farley and GM CEO Mary Barra have said they intend to work with other automakers in an effort to compete with Chinese EV makers. (Bill Priano/Getty Images/Getty Images)
BYD is considering building an assembly plant in Mexico. Marine EV According to a report in the Nikkei Shimbun newspaper earlier this week, they will be heading to the United States.
“If we can’t compete fairly with Chinese people around the world, we’re putting 20 to 30 percent of our revenue at risk over the next few years,” Farley said.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| F | ford motor corporation | 12.52 | +0.29 | +2.37% |
| GM | general motors company | 39.00 | +0.63 | +1.64% |
In its latest earnings report, Ford predicted losses for its EV division this year of between $5 billion and $5.5 billion. The company has set up a “Skunk Works” team separate from its main engineering department to focus on designing small, low-cost EVs that can compete with BYD’s Seagull models.
GM buys nearly half of large dealers that opposed EV sales
General Motors says it has a chance to break even on EVs in North America in the second half of this year. (Tama Mario/Getty Images/Getty Images)
Ford is also reevaluating its battery strategy to make its EV products more economical.
“We’ll have a competitive battery situation. We’ll be able to move to common cylindrical batteries, which could have a significant impact on purchasing power,” Farley said. “Maybe we should do it with another OEM (automaker).”
Farley said BYD could produce a small EV, the Seagull, for $9,000 to $11,000. Wolf Research analyst Rod Rush said: china production cost 30% lower than Western car manufacturers’ costs.
“Last year, 25% of cars sold in Mexico were sourced from China. The world is changing,” Farley said.
Ford considers eliminating car features that could save millions of dollars a year
Ford expects to lose $5 billion to $5.5 billion this year from its EV division. (Scott Olson/Getty Images/Getty Images)
Farley suggested that Ford’s goal for the new EV is to be profitable within a year, telling the company’s engineers, “We have to be profitable in the first 12 months. If we’re not profitable, we’ll “We will not release it,” he said. car. ”
Barra said GM is well-positioned to start breaking even on EVs in North America in the second half of this year if it can achieve annualized sales. production rate Between 200,000 and 300,000 vehicles were introduced and continue to benefit from federal EV subsidies under the Inflation Control Act.
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China’s BYD is increasing its EV shipments to Europe and is also considering entering the US market. (Reuters/Willy Kurniawan/Reuters Photo)
GM missed its 2023 North American EV production target due in part to issues with battery module manufacturing.
“I own it,” Barra said.
He said GM is now on track to overcome these issues as well as fix the software glitch that affected this year’s launch of the Chevrolet Blazer EV.
Barra said GM’s brands will focus on premium and higher-priced segments in China, just as Chinese automakers focus on mainstream market segments.
Reuters contributed to this report.
