The Detroit auto show is next week. Ford Motor had an event today, which the local news covered. Both Chairman Bill Ford and CEO Farley were on camera. They talked on the phone with TFG today. Ford said TFG said he “loves Ford”. Farley said he told TFG “the regulations have gotten ahead of the customers” and, words to the effect “something needs to be done about California”. Translation: Ford was a major reg rollback.
Ford is all about inflating ATP and GP these days. A few years ago, when Teslas were expensive, and carried a fat margin, Ford was all in on EVs. When several red states sued to have the “EV mandate” repealed, Ford filed a brief in support of the government forcing people to buy EVs.
Then Tesla started cutting prices, and accepting lower margins. Ford did a 180 degree pivot last summer, away from EVs, and toward building more huge, gas and diesel fueled trucks.
The local news reported Ford’s “donation”, and free cars, first. iirc, they reported GM’s matching “donation” a day later.
Hardy a 180. They will still spent 30% of their capex (rather than 40%) on pure electric vehicles. Ford discovered, along with other auto makers, that EV sales weren’t ramping up as had been projected.
Gen Z and Millennials generally view climate change as a major concern, perceiving it as an existential threat and expressing significantly higher levels of worry and activism compared to older generations, often influencing their career choices, consumer habits, and personal decisions due to their strong belief in the need for urgent action to address it; they are more likely to see climate change as human-caused and believe it requires immediate action.
Steve,
Ford and Farley are dense. Yes you can get to the top and be truly an idiot.
The Zs and Millennials will kill their business.
We are talking about people who are far better educated on their phones. They are totally interconnected. One boycott can ruin Ford. They are far more serious than any previous generation.
Google result
Yes, some members of Generation Z drink, but they drink less than previous generations. They are also more likely to consider alcohol an occasional treat rather than a regular part of their life.
They do not toke more.
google result
Currently, 36% of Millennials use the drug followed by 34% of Gen X, 33% of Gen Z , and 22% of Baby Boomers.
Besides cancelling the “three row EV SUV”, and retooling Oakville for F-series Super Duties, instead of EVs, they slowed the pace of work on “Blue Oval City”, and the battery plant in Michigan, all last August. They did not completely cancel their EV investment, because the outcome of the election was not then known. I suspect the Michigan battery plant to be cancelled or repurposed. If their own lights did not lead them that way, DoD blacklisting CATL probably will seal the plant’s fate. “Blue Oval City” was supposed to build F-150 Lightings. I expect it to be reworked to build gas/diesel fueled Super Duties instead, especially if the tariff against Canadian goods is enacted, which would make building in Oakville uneconomic. The Mach-E is built in Mexico. If tariffs on Mexican goods are enacted, the Mach-E will be crippled.
The most important, thing is Ford pivoted from using the government to force people to buy EVs, to influencing the government to roll back emissions and fuel economy regs on hydrocarbon fueled vehicles. They were moving in that direction before the election, so I think their policy voiced yesterday to be what they really want, rather than simply getting in line with the “leader”.
For those who missed it, Ford’s full throated defense of EV mandates, from early 2024. As they say, this policy appears “no longer operative”.
Ford’s expensive bet on electric vehicles isn’t paying off, so what’s its plan? Hamstring competitors that aren’t going all-in on EVs. That’s the story behind Ford’s intervention this week in a federal court case brought by 25 states against the Biden Administration’s de facto EV mandate.