Shulou(Shulou.com)11/24 Report--

CTOnews.com May 4 News, the price war in the electric vehicle market is becoming more and more fierce. Jim Farley, CEO of Ford Motor Company, said that this is a worrying trend, and he is unwilling to reduce the price of electric vehicles indefinitely to compete with Tesla.

Earlier this week, Ford announced that it had cut the US price of its electric crossover Mustang Mach-E by up to $4000 (CTOnews.com Note: currently about 27640 yuan), equivalent to an 8 per cent price cut. This is the second time this year that the company has cut prices in response to a series of price cuts by Tesla since January. The Mach-E is Ford Motor Company's first all-electric car model, which competes directly with Tesla's Model Y.

Farley last week compared Tesla's price war in the electric car market to a series of price cuts that Ford Motor Company founder Henry Ford began to make on Model T in 1913. He reiterated his view at a recent Wall Street Journal forum that Henry Ford's strategy eventually put Ford Motor Company in crisis.

"you don't want the product to be cheap, and people who buy used cars at higher prices have bad value, and they'll never forget it," Farley said. He pointed out that Ford Motor Company would follow Tesla's price cuts on models such as the Mach-E, but he said, "We have a bottom line."

He did not elaborate on the bottom line, but given that Ford's electric vehicles business lost $722 million in the first quarter of 2023 and is expected to lose $3 billion this year, the carmaker is clearly reluctant to cut prices further. If Tesla continues to cut prices, Ford may not be able to keep up unless they are willing to use the profits of their traditional internal combustion engine and commercial vehicle divisions to support a price war for electric vehicles.

Farley also made an interesting point in the interview that Ford is not going to give up on Apple's CarPlay, in contrast to GM, which recently said it would phase out the CarPlay and Android Auto in future models. Farley explained that Ford "lost that war ten years ago," referring to streaming into cars, adding that "70% of Ford customers in the United States are Apple users."

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