Ford CEO: Mustang Mach-E will dispel the myth of the loss-making electric cars

Ford CEO: Mustang Mach-E will dispel the myth of the loss-making electric cars

November 22, 2019 0 By autotimesnews

Car manufacturers should not justify their modest interest in electric cars by the lack of benefits, Ford CEO Jim Hackett emphasizes. Electric cars just lack success stories – and Ford will create one with its new Mustang.

The Ford Mustang Mach-E electric crossover introduced this week will bring profits to the company “starting with the first car sold,” CEO Jim Hackett said in an interview with Bloomberg.

The leadership of the American concern said earlier that electric cars now need not breakthrough technologies, but competent propaganda. Hackett holds the same point. Mach-E will surprise many, because electric cars are usually not a story about making money, he points out. Many manufacturers explain their slowness by the fact that now no one makes money on clean cars. This point of view, for example, is held at Honda.

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Hackett stresses that Mach-E will be an ordinary car from a financial point of view: starting from the first unit that came off the assembly line, it will be sold more expensively than it was worth assembling.

And over time, the margin will cover development costs – as is the case with the release of cars with internal combustion engines.

Electrek notes that even the first Tesla model – the niche Roadster – was profitable in itself. Now the whole Tesla has become profitable, despite the colossal ambitions and costs in terms of expanding production. So it’s time for traditional manufacturers to give up skepticism. Perhaps, observer Jameson Dow continues, the problem is that traditional companies call monster cars converted from gasoline versions “electric cars,” which has to make many compromises. It is not surprising that such cars are expensive, and consumers do not like them.

 We can appreciate the importance of development from scratch thanks to Volkswagen: the company said that the new full-fledged ID.3 electric car will cost 40% less in production than an e-Golf.

In addition, even in a situation where the development of an electric car is expensive and its sales are modest, it can be beneficial for the company as a whole, which this model protects from fines for high emissions and damage to public health – at least this is the case in the USA.