US automaker Ford has announced that it is working on a new electric vehicle strategy to compete with Chinese companies and may collaborate with other automakers to reduce battery costs.
Ford is overhauling its electric vehicle strategy to compete with Chinese companies and may work with other automakers to reduce battery costs in electric vehicles, Ford CEO Jim Farley said Thursday.
Speaking at a conference at Wolfe Research, Farley said BYD and other low-cost Chinese electric vehicle makers are now one of Ford’s biggest challenges. “If you can’t compete with the Chinese worldwide, you risk 20 percent to 30 percent of your revenue over the next few years,” Farley said.
Ford estimates it will lose $5 to $5.5 billion on electric cars this year. The CEO said the company has set up a dedicated “shunk works” team, separated from the company’s main engineering operations, to design a low-cost electric vehicle that can compete with BYD’s Seagull model. Ford is also evaluating its battery strategy.
