Ford seeks its electric vehicle (EV) price to be cheaper as the renowned car maker attempts to better compete with Tesla, the EV leader owned by Elon Musk.
The giant automaker is looking to meet up with its network of dealerships by next week to discuss how it could lower the prices of its EVs by roughly $2,000.
(Photo : JEFF KOWALSKY/AFP via Getty Images)
Ford Motor Company's chief executive officer Jim Farley poses next to the newly unveiled electric F-150 Lightning outside of their headquarters in Dearborn, Michigan on May 19, 2021.
Ford's EV Prices Are Set to Get Cheaper
No less than the Chief Executive Officer (CEO) of Ford Motor Co Jim Farley is about to face its network of dealerships in Las Vegas in the next few days, as per a news story by Reuters.
And in this meet-up, the big boss of the American carmaker is set to discuss with dealers how they could go about making their current EV offerings more affordable for the consumers.
The attempt of the chief executive to ask dealers to lower the price is part of the plan for Ford to provide more competitive pricing than what Tesla offers.
Reuters further notes in its report that Farley said last July that Ford actually needs to bump the pricing of its vehicles by about $2,000.
And to do so, the CEO suggests that the giant firm needs to lower some of its selling and distribution costs like how Tesla does it.
(Photo : FREDERIC J. BROWN/AFP via Getty Images)
The all-electric F-150 Lightning from Ford is displayed at the Los Angeles Auto Show in Los Angeles, California on November 18, 2021
Farley went on to raise a new method of savings, which he dubs the "low inventory model." In this case, customers could order vehicles straight from the automaker, sans the dealership.
However, the Ford boss thinks it would not be enough to go as high as $2,000. In fact, he predicts that the "low inventory model" could only help them save between $600 to $700 at best.
The spokesperson of Ford told Reuters that "we are excited to meet next week with our North America dealers to grow and win together." However, it failed to speak about the plan to ask dealerships to lower the prices of its EVs.
Read Also: Ford is Delaying its Spain Manufacturing Plant Investment for EV Production
Why Are Tesla EVs Cheaper Than Ford?
According to a recent report by Electrek, Tesla is going against the tide in selling its EVs to its customers.
The giant EV maker has entirely ditched the dealership from the process. Thus, its customers buy their vehicles straight outta Tesla or directly to consumers (DTC).
In turn, the all-electric carmaker stays clear of additional dealership costs. Not to mention that it makes the whole process more efficient.
On the flip side, it remains to be seen how Ford would ask its dealerships to help the American automaker lower its EV pricing by roughly $2,000.
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Written by Teejay Boris
