Ford CEO Farley: Electric Vehicles in the U.S. will drop to 5%

Ford Motor Co. (NYSE: F) CEO Jim Farley predicts that the adoption of electric vehicles (EVs) in the American market will decline alongside a shift towards hybrid and internal combustion engine (ICE) vehicles.

During the automotive manufacturer's third-quarter earnings call with investors, Farley stated that demand for EVs is expected to decrease due to changes in federal policies and the withdrawal of incentives. Farley remarked, "In the short term, I believe EV adoption in the U.S. market could drop to as low as 5%." However, he added that demand for "especially affordable electric vehicles" will increase in the future.

Farley proudly announced Ford's new Universal EV platform, emphasizing that this platform will serve as the foundation for electric vehicles priced below $30,000. "We are well-positioned to offer digitally advanced, wide, and appealing products. With this platform, we have supplied the components for 95% of our products," he said.

Ford also announced that it will begin producing lithium iron phosphate (LFP) battery cells at the BlueOval Battery Park in Marshall, Michigan. The company has invested over $5 billion in domestic production capabilities, which is expected to create more than 4,000 jobs.

This announcement came after Ford revealed it had halted production of its F-150 Lightning electric pickup truck. The company indicated it is facing aluminum shortages due to a fire at the Novelis manufacturing facility in New York last month. Additionally, it emphasized its pivot towards more "profitable" hybrid and gasoline vehicles.

On the other hand, Ford's rival General Motors Co. (NYSE: GM) also announced that it is scaling back its electric vehicle efforts. The company disclosed that it has halted production of the BrightDrop EV Fleet van in Ontario, Canada. General Motors CFO Paul Jacobson noted a "distinct pullback" in EV demand as well.