Ford CEO Jim Farley said he expects demand for all-electric vehicles will be slashed in half next month as federal incentives end.
Farley said the industry learned that “partial electrification,” such as hybrids, are easier for customers to accept for the time being.
DETROIT – Ford Motor CEO Jim Farley said he expects demand for all-electric vehicles to be slashed in half next month following the end of federal tax incentives on Wednesday.
Farley on Tuesday said he “wouldn’t be surprised” if sales of EVs fell from a market share of around 10% to 12% this month — which is expected to be a record — to 5% after the incentive program ends.
“I think it’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought, especially with the policy change in the tailpipe emissions, plus the $7,500 consumer incentive going away,” he said during a Ford event about promoting skilled trades and workers in Detroit. “We’re going to find out in a month. I wouldn’t be surprised that the EV sales in the U.S. go down to 5%.”
Farley said the industry learned that “partial electrification,” such as hybrids, are easier for customers to accept for the time being.
Farley said his Model e EV team is analyzing the demand for non-gas-powered vehicles each day. The company currently offers a handful of all-electric vehicles, including the F-150 Lightning pickup, which can top $90,000, and Mustang Mach-E crossover in the U.S.
