Ford CEO expects EV transition to force industry consolidation
Ford CEO Jim Farley poses subsequent to a mannequin of the all-new Ford F-150 Lightning electrical pickup truck on the Ford Rouge Electrical Automobile Middle in Dearborn, Michigan, April 26, 2022.
Rebecca Cook dinner | Reuters
DETROIT – Ford Motor CEO Jim Farley expects the auto business’s ongoing transition to electrical automobiles to power main consolidation of automakers and suppliers within the years forward.
Farley mentioned the large quantities of capital wanted to spend money on the applied sciences will power smaller firms to be acquired and put stress on a litany of latest electrical automobile start-ups which are already operating into hassle as funding dries up.
Legacy automakers and suppliers, he mentioned, “completely will get consolidated.”
“There shall be some huge winners, some individuals who transition, some who will not. Most of the small gamers can not afford to make this transition,” Farley mentioned Wednesday in the course of the Bernstein thirty eighth annual Strategic Selections Convention.
Farley mentioned the addressable market that EV start-ups are going after is not “sufficiently big to justify the capital that they are spending or the valuations.” Nevertheless, he is betting on Chinese language EV gamers over present U.S. gamers.
“There is a shakeout coming, and I really feel like that shakeout goes to favor lots of the Chinese language new gamers,” he mentioned, with out naming any EV start-ups. Excessive-profile EV gamers in China embrace Nio, XPeng and Li Auto.
Farley did point out one Chinese language EV by title: the top-selling Wuling Hongguang Mini EV produced by a three way partnership between China automaker SAIC and General Motors.