CEO Jim Farley has said the next-generation products will be less complex to assemble than Ford’s current EVs and more upgradeable with software that can add to profit margins through subscription services.
Current EVs — the F-150 Lightning, Mustang Mach-E and E-Transit — are expected to play key roles, and Ford insists that demand remains strong even as inventories rise along with production.
“While the path to sustainable profitability may not look quite the same as we previously thought, we’re confident in our ability to deliver through a more efficient product design, cost efficiencies and growth in software and services, which will continue to accelerate,” Farley said on Ford’s second-quarter earnings call in July.
“As we’ve demonstrated over the last several years, we will continue to be laser focused on disciplined capital allocation and ultimately delivering a leading and profitable EV footprint that provides us with the flexibility to scale based on customer demand.”
