When Ford CEO Jim Farley divided the company's passenger vehicle business into two divisions — one for electric cars and the other for gasoline-powered vehicles — he placed himself in charge of the Model e electric car division.
Numerous industry watchers believed that the person in charge of the gasoline vehicle companies was there to shepherd this dying technology through its final years.
Except that it is not dying, said Kumar Galhotra, head of Ford Blue, the internal combustion vehicle subsidiary of Ford. In contrast, he stated that it is thriving.
"For someone who may be nursing, I'm devoting a significant amount of time and resources to growing [manufacturing] capacity for all of our Ford Blue cars," a spokesperson for CNN Business explained. Therefore, Ford Blue represents growth to me.
By having a foot firmly planted in the world of internal combustion, Ford is able to capitalize on customers who are losing access to gas-powered vehicles from rival automakers, even while Ford itself introduces new EV models.
Ford has just introduced a new Mustang coupe that is neither electric nor hybrid. The new two-door Ford Mustang is gas-powered, according to Ford officials, since the business is fulfilling its emissions objectives with the help of electric cars such as the Mustang Mach-E SUV and plug-in hybrids such as the Ford Escape PHEV. (Galhotra's Ford Blue division includes hybrids as well.)
However, there is still a demand for internal combustion-powered performance, and Ford opted to cater to those customers, Galhotra explained. Stellantis has declared that the manufacture of the Dodge Challenger coupe and the nearly similar Dodge Charger would cease in 2023.
"In this specific market, Mustang, even though the segment may contract, there is a great deal of anticipation that our competitors may exit this segment," he added. Even if the industrial segment is declining, we may still expand.
Unlike General Motors, which has announced publicly that it would solely offer zero-emission vehicles by 2035, Ford has not specified a timetable for when it will stop producing and selling gas-powered vehicles.
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Ford has had some success with electric cars such as the Mustang Mach-E and F-150 Lightning, which are sold in the same market groups as gas-powered vehicles. In addition, Ford offers hybrid and plug-in hybrid vehicles, but GM has said that it will immediately transition to EVs.
Galhotra stated that Ford is concentrating its gas-powered cars in three main categories that span all of its models. These include enthusiast cars such as the Mustang and Bronco off-road SUVs, general-purpose SUVs such as the Ford Escape and Explorer, and, of course, trucks such the F-series and Maverick.
Ford, he noted, Continues to identify new niches to explore inside these markets, such as with the Bronco and Maverick, a compact vehicles with car-like engineering. Both models were just released and are performing well in markets where Ford did not previously compete. Galhotra stated, "We cannot produce sufficient Mavericks." We are all sold out.
According to him, the majority of Bronco and Bronco Sports consumers are new to Ford. Sixty percent of Ford Bronco customers had not owned a Ford in the last year.
This is close to "conquest rates" for Ford's electric cars, such as the Mustang Mach-E and Ford F-150 Lightning electric truck. In contrast, Ford has sold more over 75,000 Broncos and over 71,000 Bronco Sports in the first eight months of 2022, compared to about 26,000 Mustang Mach-Es. Similarly, Ford has sold about 50,000 Mavericks, with the majority of purchasers being new to Ford.
Galhotra stated that Ford can continue to invest and expand its numerous model lines in order to maintain sales growth. There are currently other Bronco models, including the full-size Bronco SUV and the compact Bronco Sport.
Each also offers a selection of limited editions, such as Heritage models. Ford has utilized a similar tactic with the Mustang, generating variations ranging from $27,000 for the 4-cylinder Ecoboost Mustang to $80,000 for the 760-horsepower Shelby GT 500.
"I see the possibility for Maverick to establish a family one day," he remarked.
Galhotra acknowledged that eventually gasoline-powered cars will be phased out. Galhotra stated that when other manufacturers transition to just supplying electric vehicles, Ford has the opportunity to pick up sales from drivers who are not ready to make the changeover. Obviously, Ford will also provide electric vehicle choices for individuals who are prepared, he added.
