Ford is on a mission to slash EV costs, seeking supplier input in a high-stakes strategy to boost profitability and compete with Tesla and Chinese EV giants. The automaker’s Model e division faced significant financial losses in Q1, prompting Ford to seek innovative ideas from suppliers to drive down costs and enhance efficiency.
What?
Ford is ramping up efforts to reduce costs in its EV sector, aiming to catch up with industry leaders like Tesla. Despite significant price cuts on models such as the Mustang Mach-E, Ford’s Model e unit continues to struggle financially. The company is now turning to its suppliers for cost-saving ideas in a bid to turn the tide.
Why does it matter?
With Tesla dominating the electric vehicle market, Ford recognizes the urgency to streamline operations and optimize profitability. By soliciting input from suppliers to cut EV costs, Ford hopes to enhance its competitiveness and accelerate growth in the EV space. The move underscores Ford’s commitment to overcoming financial challenges and achieving long-term success in the rapidly evolving industry.
How is it going to shape the future?
Ford’s initiative to seek supplier ideas for reducing EV costs signals a strategic shift towards operational efficiency and sustainability in its electric vehicle business. By leveraging supplier insights and driving cost reductions across its EV portfolio, Ford aims to strengthen its market position, drive innovation, and pave the way for sustained profitability in the evolving automotive landscape. In a competitive market where efficiency is key, Ford’s collaboration with suppliers could be a decisive factor in shaping its future success in the electric vehicle industry.
Source: https://electrek.co/2024/05/16/ford-asks-suppliers-ideas-cut-ev-costs-all-win-lose-push/