$F Aims To Produce 600,000 EVs in 2023

CNBC headline: Ford plans to increase EV production to 600,000 vehicles by 2023

PUBLISHED THU, NOV 18 20215:14 PM ESTUPDATED THU, NOV 18 20217:08 PM EST

https://www.cnbc.com/2021/11/18/ford-plans-to-increase-ev-pr…

:pushpin: Ford plans to increase its production capacity of electric vehicles to 600,000 units globally by 2023, according to CEO Jim Farley.

:pushpin: The executive expects that would make the company the second-largest U.S.-based producer of EVs, behind Tesla.

:pushpin: It’s unclear if 600,000 would place it second behind Tesla. General Motors plans to sell 1 million electric vehicles globally by 2025.

https://www.cnbc.com/2021/11/18/ford-plans-to-increase-ev-pr…

Ford Motor plans to increase its production capacity of electric vehicles to 600,000 units globally by 2023, which CEO Jim Farley expects would make the company the second-largest U.S.-based producer of EVs, behind Tesla.

Farley said the increase would double the number of EVs the company had initially expected to produce over the next 24 months, according to a report Thursday from Automotive News. That production is expected to be spread across Ford’s first three new EVs: the Mustang Mach-E, F-150 Lightning and E-Transit. It would come before production is expected to begin at a newly announced EV assembly plant in Tennessee, according to the Detroit-based publication.

“The demand is so much higher than we expected,” Farley said. “It’s a really new experience for this big company, trying to be agile. We had to approach it very differently than we’ve done capacity planning.”

Seems unlikely.

Given their performance to date.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

The reason for placing this old story up here is to show what Farley aimed for next next year and what is possible in the constrained car manufacturing world with higher loan rates coming into being.

I will hold Farley and Ford to their “targets” just as I hold Musk’s promises which all too often are years late.

I just don’t see any EV manufacturer having full bore production next year if supply constraints and even higher loan rates are crushing options for consumers.

Today, I gave a ride to and from an outpatient hospital for a friend having cataract surgery. Having some time to waste down in Key West, I walked over to nearby car dealership and spent 45 minutes shooting the breeze with an ex-club manager who is now a new car sales rep at a big badge dealership.

My friend told me things were “tight” in supply of new and used cars. He took me to the front parking lot of the dealership to show me one trick to entice consumers in to look at their offerings: diagonal parking.

“What’s up, why is this a big change in how you park cars?”

“Because, Rock, it makes the lot look more full. We show more of the car to passersby and we do this with half of what we used to have in inventory.”

“So what about car loans?”

“We are now working with 8-10 year car loans.” The seven year loan is still “standard,” (7 years standard?) but the 8-year loan last month became our most popular."

“What about lending standards?”

"I hate to say this, but, I believe cars will be facing a “repossession” armageddon once people realize they can no longer afford $1,000 a month payments on a car.

p.s. Diesel was $5.50 in Key West and cheapest gasoline was $4.89. My friend says Ford and GM will never hit their 2023 goals for EVs as there are not enough chips for their manufacture. He had zero EVs on his lot and when I told him Ford was planning to sell EVs online he looked at me with dead eyes and said, “Everyone knows this here and trust me, Brother, it is the source of a load of twisted nerves with our owner. One thing is for sure, Ford and Chevy together will not overtake Tesla in sales next year.”

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when I told him Ford was planning to sell EVs online he looked at me with dead eyes and said, "Everyone knows this here and trust me, Brother, it is the source of a load of twisted nerves with our owner. – PT

Interesting times in the auto biz!

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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Yeah, Rob, just as my friend the car sales rep told me today. See my last post. I had remembered this figure as something like 400,000 EVs for Ford and when I saw the 600,000 EV target I sent this article to my friend.

If Tesla can actually hit their productions targets in four factories during 2023, I’ll be surprised.

My friend at this car dealership told me their service department is sending people home with “loaners” (unheard of for most his years selling cars in Key West) for ICE cars where they cannot get chip parts for onboard basics running things like Onstar, audio/entertainment MCUs, etc.

He told me, point blank, “You could not pay me twice what I make now to be the service manager here handling complaints of customers who are waiting - with us - for parts to arrive. It’s a smack in the face to give a consumer a loaner of an entry level car while their luxury car is on our lot awaiting parts and cannot be driven. If I could find parts, I’d open a repair shop in Key West, no doubt.”

Oh, one more thing he mentioned: Tire prices are up 20% in the past 8 months at this dealership. He said, “I am watching what happens when some of the heavier SUV and pickup owners (who go through tires more often) come in here for their next swap of tires. And if you think of us making dollars off EV owners who will change tires more often - good luck. They will go to cheaper tire mechanics - two of which have recently opened shops down here in Key West and who have bang up business.”

One more observation in Key West today: electric bicycles with big fat beach tires outnumber regular bicycles and scooters. I don’t know who sells or services these things, nor could I read the names of the manufacturers printed on the cross tubes. One thing I foresee: more deaths from EV bicycles. People are riding these things on sidewalk bike lanes at 30 MPH, going faster than bumper to bumper traffic on North Roosevelt highway. If a pedestrian with headphones walking on the sidewalk happens to step out in front of one of these speedsters flying up from behind, it’s goodbye to that pedestrian.

I saw numerous of these new EV bike riders coming at me from the wrong way on two one-way streets downtown. Un-nerving to see something moving faster than I was driving, and, riding the wrong way.

Key West is not a place to spend a relaxing vacation any longer. The town has gone to hell with traffic and trash. The bridge leading from Stock Island (next island up from Key West) to Boca Chica airbase (3rd Island up) is strewn with trash, I mean, at least a ton of crap lying on the shoulders of roads going East and West. It looked like a 3rd World bridge. There must have been at least 40 or 50 single use plastic bags in the one-half mile length of that bridge, all sitting precariously on the emergency shoulder. No wind today. But the next stiff breeze, all those single use bags go over the railings and directly into the waters to entrap sea life and choke anything which gets flippers and fins caught in them, or, worse, which think its some kind of jellyfish to eat.

Key West is now a drinking town for degenerates. To enjoy nature, you must, absolutely, get the hell off that island and Stock Island, and it’s looking like the next two Keys up, Rockland Key and Big Coppitt are turning into mondo condo hell as well.

This was my first trip down there in two-years. I am 21 miles away from that madness. I’m good if I never visit it again for another two-years.

Imagine, Rob, a service department which no longer depends on bread and butter quick turnarounds on high margin things like oil changes, filter changes, tire changes, etc, and which see less of their “customers” driving newer EVs floating their car dealership badges out in traffic which never visit the dealership for service.

I tip my cap to you for bringing this up on this board first. And after talking to my old friend today, yeah, something is going to give on this issue of car dealerships. This is the big elephant on crystal meth at dealerships today: the coming EV takeup and its effect on former high margin service departments.

Not only that: the dealer will not be holding EV inventory and making $$$ of sales on new cars. My thoughts are, “What if dealers refuse to stock used EVs as as some kind of payback to the OEMS?”

This will be coming to a head shortly. If you see anything re:EV/Dealership fights, please, report it here.

Sorry to hear all that, PT. A lot of places are going downhill and it’s sad when we see them. Here in my neck of the woods (south Charlotte NC), it’s fairly upscale but we see beggars on many corners (sadly, a scam by some) and we’ve noticed a lot more drivers ignoring traffic laws… running lights, speeding, even hit and run. And a couple of our nearby shopping areas are seeing increasing crime.

Bottom line… there needs to be a change in the hearts of many… but many don’t seem to even acknowledge it.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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This will be coming to a head shortly. If you see anything re:EV/Dealership fights, please, report it here. – PT

Haven’t seen anything, but it sure looks like there will be blood. And soon.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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