Ford CEO expects EV sales to be reduced by half after tax credits

DETROIT – Ford engine The CEO, Jim Farley, said that he expects the demand for electric vehicles to be reduced in half next month after the end of federal tax incentives on Wednesday.

Farley said on Tuesday that it “would not be surprised” if sales of electric vehicles had passed on the one hand market share of around 10% to 12% this month – which should be a record – 5% after the end of the incentive program.

“I think it will be a dynamic industry, but it will be smaller, much smaller than we thought, in particular with the change of policy in the tail pipes, as well as the incentives of $ 7,500 by disappearing,” he said during a Ford event on the promotion of trades and qualified workers in Detroit. “We are going to discover it in a month. I would not be surprised that the sales of VE in the United States decrease at 5%.”

Farley said that industry has learned that “partial electrification”, like hybrids, is easier to accept for customers for the moment.

Farley said her model EV team analyzes the request for vehicles not fed by Gas every day. The company currently offers a handful of all electric vehicles, including the Lightning F-150 pick-up, which can exceed $ 90,000, and the Mustang Mach-E crossing in the United States

Federal EV incentives up to $ 7,500 affect an end as part of the “Big Beau Bill Act” of the Trump administration, which stripped the old stay, but included advantages to buy a vehicle assembled in the United States, whatever its EV.

“Customers are not interested in the electric vehicle of $ 75,000. They find them interesting. They are fast, they are effective, you are not going to the service station, but they are expensive,” said Farley.

Once the bill has been adopted, EV sales quickly gained ground, especially since some car manufacturers have added even more discounts to keep old models away.

COX Automotive provides that EV sales reached 410,000 in the third quarter, up 21% compared to the previous year. It would be easily the greatest number of EVs ever sold in a quarter in the United States, as well as a record market share of 10%.

COX and other analysts and industry leaders expect many buyers to be taken before to buy an EV before sunset for federal incentives.

Farley also said that federal changes meant that the automotive industry, including Ford, will have to adapt, saying that the company will have to understand what to do with its battery factories and electric vehicle capacity.

“We will fill them, but it will be more stress, because we had a foreseeable four -year policy,” said Farley. “Now, politics has changed. … We all have to make adjustments, and it will be good for the country, I think, but it will be more stress.”

Light adjustment: Farley spoke on Tuesday during the “Ford Pro Accelerate” event of the automaker, which presents executives of many industries as well as civil servants discussing “the essential economy” and the need for work and qualified education.