Ford's new strategy of focusing on smaller electric vehicles challenges America's long-standing preference for larger cars, raising questions about consumer acceptance and the company's future profitability.
Ford's pivot to smaller EVs is driven by the high cost of large electric vehicles, which require expensive batteries.
American car buyers have traditionally favored bigger vehicles, complicating the shift toward compact EVs.
Competition from smaller, affordable Chinese EVs could force U.S. automakers to adapt quickly.
Key quote:
“If we cannot make money on EVs, we have competitors who have the largest market in the world, who already dominate globally, already setting up their supply chain around the world. If we don’t make profitable EVs in the next five years, what is the future?”
— Jim Farley, CEO of Ford
Why this matters:
The success of Ford’s strategy could reshape the U.S. auto industry, influencing job markets, environmental outcomes and America's position in the global EV race.
Ford, General Motors and others are striking deals with mining companies to avoid raw material shortages that could thwart their electric vehicle ambitions.
Ford Motor Co. announced plans to cut 3,000 jobs as the automaker restructures and reorients its business around electric vehicles, a spokesman confirms.
