Sam from The Electric Viking recently raised concerns about Ford’s electric vehicle sales plummeting by 50% in January. Sam delved into the reasons behind this drastic drop and questioned Ford’s strategy in the rapidly evolving electric car market. Here’s the full story.
The Decrease in Cost
Sam began by sharing that Ford is missing a significant opportunity to establish itself as a key player in the emerging era of electric cars. He pointed out that the cost of batteries, a significant component of EVs, is expected to fall by 50% this year, making electric vehicles more affordable to manufacture than traditional gasoline-powered vehicles.
The Ford Mustang Mach-E, considered a decent and reasonably priced electric vehicle, was highlighted in the video. However, despite its positive attributes, Ford’s recent decision to lay off 1,300 staff involved in manufacturing the Mach-E has resulted in a further 50% decline in its sales.
The Price Factor
Sam argued that Ford is overlooking the chance to seize a pivotal role in the electric vehicle market and may be heading towards a fate similar to Kodak, a company that failed to adapt to changing technology.
Sam touched upon the imminent release of the Ford Mustang Mach-E in Australia, with initial prices being higher than the Tesla Model Y. Despite recent price reductions, the Mach-E is still perceived as relatively expensive in Australia. Sam added that the decline in sales, especially in the United States, raises concerns about Ford’s ability to capitalize on the growing interest in electric vehicles.
The Reason for the Disappointing Sales
The primary reason cited for disappointing sales in the U.S. is quality problems. Sam mentioned that there have been reports of quality issues, although he accepted that Ford has a history of dealing with warranty costs. Despite these quality concerns, Sam shared that Ford CEO Jim Farley remained optimistic about the future of electric vehicles at Ford.
Ford’s electric vehicle sale in January was reported to have fallen by 11%, with a stark year-over-year decline of 50%. The video questioned Ford’s commitment to ramping up production, given the sluggish sales figures.
Inability to Keep up With the Demand
Sam shared disappointment in Ford’s inability to keep up with the demand for electric vehicles, especially when compared to the positive sales trends of hybrids and internal combustion vehicles.
The video highlighted that Ford’s sales of electric vehicles in January amounted to 4,674 units, translating to approximately 1,150 units per week. Sam added, “I mean Ford’s only selling about 1,100 EVS per week in America. A car market of 16 million vehicle sales per year! This is just really pathetic.”
Ford’s First Mistake
Sam concluded by raising the question of whether reducing the price of the Mustang Mach-E would boost sales.
Several YouTube users shared their thoughts on the incident.
One user wrote, “Ford’s first mistake was calling it a Mustang when it didn’t look like one. Then they tried charging a premium for it.”
Another user added, “I can’t speak much for Ford. But in general EV tech is improving at a blistering pace. A “good enough” first or second-generation EV doesn’t cut it anymore. It’s a trap.”
So what are your thoughts? Do you believe traditional automakers like Ford can successfully adapt to new distribution models and remain competitive as electric vehicle adoption continues to rise?
