Updated: 12:55 p.m. ET
(Bloomberg) -- Ford Motor Co. plans to introduce a long-range electric vehicle to compete with battery-powered models coming from Tesla Motors Inc. and General Motors Co. that would go 200 miles or more on a charge.
“We want to make sure that we’re either among the leaders or in a leadership position,” Chief Executive Officer Mark Fields told analysts and reporters on a conference call Thursday. “When you look at some of the competitors and what they’ve announced, clearly, that’s something we’re developing for.” He didn’t say when Ford would start producing the vehicle.
Ford joins a growing field of automakers seeking to overcome consumer fears that electric cars will run out of juice, leaving them stranded. GM plans a debut this fall for the Chevrolet Bolt, an all-electric hatchback it says will have a range of at least 200 miles (322 kilometers). Reports indicate Nissan Motor Co.’s next-generation Leaf electric car will match that distance on a charge. Tesla CEO Elon Musk has said the $35,000 Model 3 slated for late 2017 will go at least 215 miles between plug-ins.
News of Ford’s electric-vehicle plans helped drive up its shares on a day when the Dearborn, Michigan-based automaker posted record first-quarter net income of $2.5 billion, surpassing analysts’ expectations. The stock rose 3.5% to $14.14 at 12:22 p.m. New York time.
|Tracking Tesla
Ford, which recently paid almost $212,000 to buy one of the first Tesla Model X electric sport utility vehicles, is clearly paying attention to the Palo Alto, California-based maker of electric vehicles. Tesla was deluged with $1,000 reservations for the Model 3 after Musk revealed it March 31 at the company’s design studio in Hawthorne, California.
“I’m glad Mark Fields is saying Ford will be a leader and match whatever EV range is out there,” said David Whiston, an analyst at Morningstar Inc. in Chicago, who rates Ford the equivalent of a buy. “You can’t just ignore Tesla getting 400,000 reservations on a vehicle in a little more than a week’s time.”
Research shows that more consumers will be willing to buy an electric vehicle as driving range grows to 200 miles and the price falls below $30,000. Automakers are under pressure to improve the fuel economy of their entire lineups to meet U.S. regulations that mandate a company’s fleet must average 54.5 miles per gallon by 2025.
|Focus upgrade
Ford this fall will begin offering its Focus Electric model with a driving range of 100 miles. That’s an upgrade from the 2016 model’s 76-mile limit. Current Focus Electric owners drive about 9,500 miles annually, or about 30 miles a day, according to the automaker. Ford expects that a longer range and faster charging outlets will generate more EV buyers.
Ford has said it is investing $4.5 billion in electrified vehicles and will add 13 electric cars and hybrids to its lineup by 2020. Those models will represent 40% of Ford’s showroom, up from 13% now. Fields has said plug-in hybrids will be the fastest-growing type of electric vehicle.
But with fuel prices low, the automaker has had a hard time attracting buyers to its hybrid and plug-in hybrid models, including the C-Max, Fusion and Lincoln MKZ hybrids. U.S. sales of those models have fallen 6% this year, to 13,688 vehicles, according to researcher Autodata Corp.
Consumers are showing a greater preference for SUVs and pickups. U.S. sales of Ford’s SUVs rose 16% in the first quarter.
Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
