Host: Julia Boron, CNBC’s Senior Media and Technology Correspondent
Guest: Jim Farley, CEO of Ford since 2020
Topic: Transformation at Ford with a focus on electric vehicles (EV)
Early Life and Passion for Cars
Personal Story:
Started tinkering with cars at age 16
Drove across the country in a Mustang which he rebuilt
Background: Family with a long history at Ford
Vision for Electric Vehicles (EVs)
Op-Ed Highlights:
Experience of driving an EV: Effortless acceleration, smooth deceleration
EV’s range satisfaction for 95% of Americans
Comparative cost reduction of EVs to internal combustion engines
The decline of EV prices making them affordable now
EV Usage Data
Daily Range Needs:
Average range: 300 miles, sufficient for most American drivers
Home charging reduces the need for frequent recharges
Historical Context
Ford History:
Grandfather's employment details at Ford
Emphasis on how key Ford’s future is linked to the EV transition
Strategy on Hybrids and Electric Vehicles
Current Market Strategies:
Ford believes in providing multiple power options (Hybrid, EV, Combustion)
F-150: 25% hybrid sales, popular for its exportable power feature
Hybrids seen as a transition step towards full electrification
Challenges and Solutions in EV Adoption
Barriers:
Range Anxiety: Ford emphasizes choice, with many people starting with hybrids
Chinese Market: China’s dominance in EV manufacturing and raw material processing
EV Profitability
Timeline & Strategy for Profitability:
Aim to profitably produce EVs within five years
Focus on smaller, more affordable EVs and commercial vehicles
Innovations and Competitions
Skunk Works Innovation Plant:
Created to innovate around lower-cost EVs
Targeting a $30,000 EV model in about 2.5 years
Competition with Tesla and Chinese automakers like BYD
AI and Workforce
Impact of AI:
Enhancing productivity and managing supply chains
Changing the nature of jobs rather than replacing them
Autonomous Vehicles
Strategy Shift:
Moving away from Robo taxis to Highway Level 3 autonomy (eyes-off on highways)
Challenges with regulations, technological limits, and weather conditions
Impact of External Factors
Political Considerations:
Effect of upcoming presidential elections on policies
China’s market strategies and U.S. tariffs
Future Directions and Policy Recommendations
Role of Government and Regulation:
Need for policy support and regulation on data privacy
Importance of integrating bidirectional charging and reducing grid stress
Audience Questions
Topics Discussed:
EVs and the experiential drive for car enthusiasts
Weight reduction in vehicles
Educational initiatives to attract automotive technology students
Future of individual car ownership and importance of fleet ownership
Concerns about the supply chain and geopolitical risks
Conclusion
Summary of Key Points: Reflecting on Ford's historical mission, current strategies, and future outlook, focusing on transitioning successfully to EVs and embracing AI in its industrial system.