Amid declining demand, Ford Motor Company has issued a call to action to its electric vehicle suppliers, urging them to reduce costs to maintain competitiveness. Liz Door, Ford’s chief supply chain officer, emphasized the importance of achieving material cost efficiency within the company’s EV portfolio to enhance affordability.
However, this directive raises concerns about potential compromises in quality, especially considering Ford’s recent quality-related challenges. Despite CEO Jim Farley’s prior commitment to prioritizing quality, Ford led the Big Three in Detroit with 58 recalls in the United States in 2023, affecting approximately 6.1 million vehicles.
Beyond quality concerns, Ford faces pressure to lower EV production costs due to increasing competition from Chinese automakers and financial challenges within its EV division. Ford’s Model e division reported significant losses in 2023 and projected further losses in 2024, reflecting the urgency to address cost issues.
While Ford’s current EV offerings, such as the Mustang Mach-E and F-150 Lightning, aim to compete in the market, affordability and quality remain critical factors in their success. Addressing cost efficiencies while maintaining quality standards will be crucial for Ford’s EV strategy moving forward.
