Speaking at an investor conference this week, Ford CEO Jim Farley had a grim prediction of EV prices compared with internal combustion vehicles (ICE). He suggests EVs won’t find price parity until after 2030.
Farley points to “dramatically lower labor content” as the main driver for lower costs, as EVs are simpler machines mechanically and have fewer parts than comparable ICE vehicles. Smaller, cheaper batteries will also be a factor.
Other factors for higher automaker profits and lower EV prices would include lower distribution costs from online sales and revenue from digital services. According to Reuters, Farley says that Ford’s software services, including Blue Cruise driver assist systems and Ford Pro commercial services, has 600,000 subscribers, three times what Ford had just a year ago.