Fisker Delivers First 22 Electric SUVs in U.S.

PublishedJune 26, 2023

Fisker Inc.announced June 23 it has begun making its first deliveries of the Fisker Ocean SUV to customers in the U.S.

“We have been waiting for this moment ever since we started the development of the Fisker Ocean in October 2020,” Chairman and CEO Henrik Fisker said. “As a California-based company, we are thrilled that our first U.S. customers are finally getting behind the wheel of the Fisker Ocean and will experience its innovative features, class-leading 360-mile range, and highest levels of sustainability. We’re grateful our customers have been patient with us as we dealt with a longer-than-expected certification period earlier this year, and we’re happy their patience is now starting to be rewarded.”

Fisker commenced deliveries of 22 vehicles June 23, at a company facility in the Los Angeles area where product specialists can familiarize customers with their Fisker Ocean One launch edition SUVs. This initial group of vehicles was shipped to the U.S. from Austria on an expedited basis. Additional deliveries will continue through the summer.

The company has already delivered vehicles in Europe, following a unique dual-market certification strategy as it launched simultaneously in Europe and the U.S.

The Fisker Ocean One is a launch edition model of the $68,9992 Fisker Ocean Extreme, with a 113 kWh battery pack (106 kWh usable) and an EPA range of 360 miles on standard 20” wheels and tires, the longest range of any new electric SUV in its class. The all-electric SUV starts at $37,4992 for the Fisker Ocean Sport trim level in the U.S.

Source: Fisker

The EV company is hiring managers, customer service associates and technicians, and expanding its network of collision repair shops.

An email to employees said the company may have to implement layoffs in June if if it fails to restructure and attract investors.

Fisker Expects to Ramp Deliveries to 300 Vehicles Per Day

Written by Autobody News Staff
Published Sept. 26, 2023

Fisker Inc. announced Sept. 26 it has built 5,000 Fisker Ocean SUVs and expects to ramp deliveries of the Ocean to 300 vehicle per day later this year.

“We want to thank our customers for their patience as we have refined our delivery processes,” Chairman and CEO Henrik Fiskersaid. “As we complete the third quarter and move into the fourth, we are preparing to significantly increase our pace of deliveries in the U.S. and Europe. We are expanding both our teams and our physical locations, and we are targeting deliveries of 300 vehicle per day to meet strong demand for the Fisker Ocean. I’m tremendously pleased that our company has geared up to achieve these milestones.”

To date, Fisker has delivered more than 900 customer vehicles in its European and U.S. launch markets, where it started deliveries in June. Several hundred more are expected to be delivered the same week of the announcement.

The $68,999 Fisker Ocean Extreme has a 113 kWh battery pack (106 kWh usable) and an EPA range of 360 miles on standard 20” wheels and tires, the longest range of any new electric SUV in its class. The all-electric SUV starts at $37,4992 for the Fisker Ocean Sport trim level in the U.S.

The model offers customers no-haggle pricing on Fisker vehicles while also providing dealer partners with larger market territories.

Fisker Opening Flagship Lounge in Los Angeles

PublishedAug. 18, 2023

Fisker Inc. will open its U.S. flagship Lounge at The Grove in Los Angeles, CA, on Aug. 19.

The Fisker Lounge at The Grove, one of the most popular outdoor shopping and entertainment districts in Southern California, will welcome prospective customers to experience and test drive the all-electric Fisker Ocean. Test drives of Fisker’s first vehicle, now being delivered in the U.S. and Europe, may be scheduled in-store and online.

“I’m super excited for customers to not only experience the Fisker Ocean, but also the vision I had in designing a timeless space for our flagship Lounge in Los Angeles,” said Chairman and CEO Henrik Fisker. “I want to thank our customers and supporters for their patience as we open additional Fisker Lounges and deliver thousands of Fisker Oceans across North America and Europe in 2023 and 2024.”

Fisker, an internationally renowned car designer, added the Lounge at The Grove also expresses the company’s philosophy of how great design can enhance the public’s relationship with the brand. Fisker has three core values: design, innovation and sustainability, and the new Lounge was developed to encapsulate all three in a compelling environment.

The flagship Lounge is distinctive. The two-story space combines curved lines, smooth textures and elegant lighting. With its effortless, sophisticated aesthetic, the space will serve as inspiration for future Fisker Lounges and Centers+ locations across North America and Europe.

Fisker Lounges provide an opportunity for customers to experience the Fisker Ocean and engage with product experts. Throughout the Fisker Lounge, visual displays showcase how Fisker integrates sustainability from design to a vehicle’s end of use. Customers can “touch and feel” 110 pounds of recycled content in the Fisker Ocean, enjoy the vehicle’s innovative design and features, and experience Fisker’s commitment to “A Clean Future for All,” the automaker’s mandate.

The Fisker Lounge at The Grove is open 10 a.m. to 9 p.m. Monday–Thursday, 10 a.m. to 10 p.m. Friday-Saturday, and 11 a.m. to 8 p.m. Sunday.

Customers may configure and reserve a Fisker Ocean at Fiskerinc.com.

Source: Fisker

Fisker Releases Details on Alaska Super Sport Pickup

Published Aug. 19, 2023

Fisker Inc. on Aug. 17 released additional details on its Fisker Alaska pickup truck.

“Alaska breaks with convention,” Chairman and CEO Henrik Fisker said. “It doesn’t fit into any current segment, as it combines features of a mid-size pickup with the capabilities of a full-size thanks to its innovative expandable bed design.”

Fisker revealed the Alaska at its Product Vision Day on Aug. 3.

The Fisker Alaska is the company’s “everything” vehicle: sporty handling and driving dynamics combined with luxury SUV comfort and everything that discerning buyers in the booming pickup-truck market expect. But Fisker also intends to make the Fisker Alaska the world’s most sustainable pickup when deliveries commence in 2025.

The company is also innovating with the vehicle, particularly when it comes to the bed, which is designed to expand from 4.5 to 7.5 feet thanks to a Houdini partition behind the rear seats that can be electronically lowered into space created by the battery layout of the FM31 platform. The Houdini door will be protected by a flip-up panel. With the powered liftgate dropped and rear seats lowered, the bed expands to 9.2 feet. When the rear seats are folded down and the Houdini is lowered, the rear seats are protected by fold up panels including a panel folding up behind the front seats. 

Beyond that, Fisker aims for the Fisker Alaska to be the world’s lightest electric pickup and feature extra storage in an insulated front trunk.

The Fisker Alaska will be offered with two battery packs---75 kWh and 113 kWh---that will offer range of 230-340 miles; the 0-60 mph time will range from 3.9 to 7.2 seconds. The vehicle will be 17.4 feet in length and entice owners with a Big Gulp cupholder---the world’s largest, a cowboy hat holder, cockpit storage for work gloves, a large center armrest with storage for flashlights and pens, and a passenger tray with a tablet holder.

Wheels will be available in 20- and 22-inch sizes.

Production of the Fisker Alaska is expected to start in Q1 of 2025. Interested customers can reserve the vehicle at Fiskerinc.com for $250 for their first Alaska and fully refundable $100 for the second.

Go to Fiskerinc.com to place a reservation on the Fisker Alaska.

Source: Fisker
 

Fisker Reports Q2 Losses, Cuts Production Target Due to Supply Woes

Written by Suvrat Kothari, InsideEVs
Published Aug. 8, 2023

California-based Fiskerhas cut its production forecast for the year due to supply chain troubles, the brand said in its Q2 earnings call.

Its original projection was to manufacture between 30,000 to 36,000 electric vehicles in 2023, although Fisker has now slashed that forecast to between 20,000 and 23,000 units.

The production woes are also contributing to its operational losses---the brand lost $87.9 million in Q2 2023, marginally less than the $88.6M it lost in Q2 2022.

The company said in its Q1 2023 earnings report that it lost $120 million in the first three months of this year, but an operating profit is expected in Q4 2023, per Automotive News.

Fisker is among many EV start-ups facing troubles in ramping up production, and they continue to post operational losses in an effort to grab a share of the growing EV pie.

It’s a common trend among start-ups to burn through cash before they can turn a profit. Rivian’s Q1 2023 losses amounted to $1.35 billion. Lucid appears to be in the same boat.

However, the Fisker Ocean SUV has finally entered production, and deliveries are underway in Europe and the U.S. Its first quarterly sales revenue totaled $825,000.

The brand’s contract manufacturing partner Magnaproduced 1,022 units of the Ocean in Q2 2023, missing its initial target of between 1,400 to 1,700 units, due to a components crunch.

The brand has yet to prove its mettle but seems to forge ahead with new promises. During the Aug. 3 Production Vision Day, Fisker revealed four new models, including the Pear small electric hatchback, a high-performance electric grand tourer called the Ronin, an electric pickup christened Alaska, and an off-road package for the Ocean called the Force E.

The brand’s CEO Henrik Fisker has big ambitions for the Pear, which he says will be made in the US, and aims to produce one million units annually.

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The beleaguered start-up is trying to stay afloat after reports suggest it may be filing for bankruptcy.

The EV maker announced earlier in January it is moving from direct sales to dealership partnerships.

The EV startup is struggling to stay afloat as the NYSE prepares to delist its stock.

Fisker Unveils 4 New Upcoming EVs

Written by Suvrat Kothari, InsideEVs
Published Aug. 5, 2023

Fisker made a big splash Aug. 3 during its Product Vision Day 2023 event by revealing four new electric vehicles that will join the Ocean SUV in the next couple of years.

Taking center stage during its live event was the Ronin flagship electric supercar with 600 miles of range. It would be a "technology carrier" for showcasing innovations. Additionally, Fisker also revealed the Pear compact electric hatchback for the masses, Alaska pickup truck and an adventure pack for the Ocean called the Force E.

The brand also revealed its new supercomputer that will debut on the Pear. Reservations are open for all the announced models.

Fisker Pear

The most anticipated reveal was arguably the Pear, an acronym for "Personal Electric Automotive Revolution." CEO Henrik Fisker said the compact EV will start at $29,000 and be eligible for federal incentives, which would drop the price to $22,400.

The U.S.-made EV will ride on the SLV1 platform, an abbreviation for simple, versatile and volume. It's a "steel plus plus" platform and uses 35% fewer parts. The dual-motor all-wheel-drive EV will get a range of around 300 miles. But don't expect it to appear on American roads any time soon---the launch timeline is mid-2025.

Cool design elements at the rear include a wraparound LED taillamp and what the brand calls the "Houdini trunk"---it rolls down and disappears into the rear bumper, which Fisker said could be useful in getting items in and out easily when cars are parked closely on tight city streets.

Fisker will offer the Pear in five- and six-seat configurations, with the latter getting a bench seat up front to sit three abreast. The brand plans to sell 1 million units of the Pear annually but stopped short of mentioning the timeline for that target.

Fisker Ronin

Another exciting reveal is the Ronin, which the brand calls the world's first four-door convertible. The hand-built EV will flaunt a carbon fiber hardtop, and availability will be limited. Its silhouette is somewhat of an ode to the Fisker Karma, the brand's first-ever vehicle that launched in 2012 and was soon discontinued.  

The future TeslaRoadster rival appears striking with its low-slung stance, full-width front headlamps with an embedded illuminated Fisker brand logo, sculpted wheel arches and scissor doors. To maximize aerodynamic efficiency, it will have active aero flaps as well. It has four doors and is a five-seater. 

The electric luxury GT will have a cell-to-chassis battery, eliminating packs and modules, which would enable 600 miles of range. The all-wheel-drive EV will feature a tri-motor set-up and deliver an output of more than 1,000 horsepower, with a 0-60 mph time of just 2 seconds.

The Ronin is expected to launch in the U.S. by the end of 2025.

Fisker Alaska

Fisker will enter the fast-growing electric pickup truck space with the Alaska. The electric truck market is currently occupied by the likes of the FordF-150 Lightning, RivianR1T, GMCHummer EV and ChevroletSilverado. Fisker claims the Alaska will be the world's most sustainable and lightest truck.

It is built on the FT31 platform, a modified and stretched Ocean platform. It will slot somewhere between a compact and a mid-size pickup truck.

At first glance, the electric truck appears to have the silhouette of a Hyundai Santa Cruz---its raked C-pillar slopes into the bed, and the design is an evolution of the Ocean SUV. The Alaska has a 4.5-foot bed, which extends to 7.5 feet, partly thanks to another "Houdini trunk," which in this application is a midgate that completely rolls down.

With the rolled-down midgate and an opened trunk gate, the bed's length increases to 9.6 feet. Customers will also be able to fold the rear seats flat, and open up additional room. 

The expected driving range is between 230 and 340 miles, and it's likely to use the Ocean's battery and power units. The Ocean gets a maximum range of 440 miles on the WLTP cycle, thanks to 113 kilowatt hours of battery capacity.

The CEO demonstrated how the truck's center console houses the world's largest cup holder, which appeared to hold a 1-gallon bottle. Another quirky feature is a "cowboy hat holder" above the rear seats, alongside the usual suite of features like California mode seen on the Ocean.

The Fisker Alaska will cost $45,400 before incentives, and will likely qualify for the federal tax credit that could drop its starting price to $37,900. The production version is expected to roll out in December 2024.

Fisker Force E

The brand also unveiled an adventure-ready Ocean called the Force E. It rolled on the stage draped in a matte black paint, with chunky 33-inch off-road tires and 21-inch aluminum aero wheels, extra wide fenders and a massive roof rack. The Force E is an add-on package that existing Ocean customers and reservation holders can buy.

Additionally, it packs the usual suite of off-road features that adventure junkies would expect, including higher ground clearance, a protective underbody plate, structural front and rear skid plates, along with special dampers and improved approach and departure angles. The package will be available in early 2024, and pricing will be revealed closer to that time frame.

Blade Supercomputer

The Pear's brain will essentially be a supercomputer called Blade, which looks like a tiny box but appears to pack a lot of capability. It can deliver an insane computing speed of 6.2 teraflops. For reference, one teraflop can deliver 1 trillion floating point operations per second.

It's upgradeable and supports multiple functions like 5G, Wi-Fi and multi-gigabit ethernet---Fisker said it will be a mini data center on wheels. The Ocean's architecture uses eight primary domain controllers, while the Pear will use just two high-performance controllers.

Another notable aspect is the supercomputer will enable high-quality graphics renderings and artificial intelligence capabilities, which can "predict failures before they occur."

Fisker is still a new brand, and it hasn't fulfilled production promises for the Ocean, its first BEV. The brand missed production targets for both Q1 and Q2 2023, while its operational losses continue to mount. Its Q1 2023 net losses equaled $120 million. With three new EVs on the horizon, it's likely an uphill task for the company to ramp up production and make the new products a reality.

We thank InsideEVs for reprint permission.

The 32,000-square-foot former dealership in Vista, CA, offers a showroom, service and delivery center.

Florida Bans Direct-to-Consumer Car Sales for Legacy Brands

Written by Christopher Smith, InsideEVs
Published June 20, 2023

A new Florida law, House Bill 637, recently signed by Gov. Ron DeSantis, blocks automakers from bypassing dealerships to sell vehicles directly to consumers---but it doesn't apply to all companies.

In short, if automakers didn't have deals with independent dealers in the state before the law, they can sell direct.

Under the new law, manufacturers cannot directly own a dealership if it already has franchise agreements in place. This puts the kibosh on legacy automakers selling directly to consumers through factory stores, similar to laws found in other states.

However, those laws generally block all brands from direct-to-consumer sales. The language in Florida's law leaves the door open for companies that don't have franchise agreements to sell directly.

That seemingly gives a big advantage to EV brands like Rivian, Lucidand Tesla. Under the law, Tesla could sell a Model 3 directly to a buyer at a fixed price without a middleman, while a Ford Mustang Mach-E would incur retail pricing from a dealer.

Furthermore, HB 637 prevents automakers from forcing franchise dealers to sell vehicles at a specific price, and manufacturers must maintain vehicle allocations to dealerships consistent with previous levels.

This seems to curtail automaker efforts to prevent excessive dealer markups on popular vehicles by reducing future allocations for dealers that don't comply with automaker requests. Casting a specific eye towards Ford, the law also conflicts with the company's plan to adopt no-haggle pricing starting next year.

InsideEVscontacted Detroit-based automakers regarding the law.

A spokesperson for General Motors emailed the following statement: "We value our relationship with our Florida dealers and will continue to support our customers while remaining compliant with Florida law."

Representatives for Stellantisand Ford declined to comment, instead referring to the Alliance for Automotive Innovation, a trade group representing automakers. In a letter to DeSantis dated May 3, the alliance requested a veto of HB 637 on numerous grounds, stating it "undermines the free market by statutorily guaranteeing revenue for auto dealers" and "solidifies two different regulatory systems for competitors in the same market," among other things.

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Florida Senate Committee Discusses Possible Fee Hikes on EVs

Written by Andrew Powell, The Center Square
Published Jan. 24, 2023

The Florida Senate Committee of Transportation met in Tallahassee on Jan. 24 to discuss fees to be imposed on Floridians who drive electric vehicles.

The committee was tasked to work out appropriate fees, depending on what type of EV was being used. Battery-only cars would have a higher fee than a hybrid that uses an internal combustion motor in tandem with the battery.

According to Committee Chair Sen. Nick DiCeglie, R-Indian Rocks Beach, legislation has been filed in 31 states over the past three years to impose new registration fees on electric vehicles.

The definition of an EV in Florida, is a motor vehicle powered by an electric motor that draws current from rechargeable storage batteries, fuel cells or other sources of electrical current.

Road maintenance is paid for by the state, who collects the majority of its taxes via an excise tax on gasoline and diesel at the gas pump. Electric vehicles currently have a regular registration fee, however, the state wants an additional fee for EV users for their share of the road maintenance.

Cindy Price, the chief legislative analyst for the Senate, made a presentation about vehicle registration fees across the U.S. and how they would be imposed in Florida.

Price stressed the need for EVs in Florida to have a clearer definition, as those who drive EVs that also use a combustible engine, are in fact still paying for road taxes through purchasing fuel.

“The assertion is that electric vehicle owners may not be fairly contributing to the cost of constructing and maintaining public roads through payment of traditional registration fees,” Price said.

According to Price, 31 states currently impose some form of a special registration fee for EVs.

Around the country, the cost ranges from $75 to $200, and 18 of those 31 states also assess whether those vehicles operate on a combination of electricity and fuel. Fees for those types of EVs range from $45 in Iowa to $100 in Alabama, Arkansas, Ohio and West Virginia.

In Washington, the fee is around $225 per year for a plug-in electric vehicle and Oklahoma bases its fee on the vehicle size and weight. Idaho considered legislation in 2021 that would have increased EV registration fees to $300.

Some states are also already directing fees to construction and maintenance and including installing more charging stations.

One solution suggested was a road-user like charge, that would be a charge for every mile driven. Pennsylvania imposes an alternative fuel tax, which is computed on a gallon equivalent basis. According to the Pennsylvania Department of Revenue, the 2023 tax rate for electricity is .0183 per kilowatt hour.

Legislation will likely be filed once the committee has enough information and are able to work through the various nuances surrounding EV use.

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Florida Senator Aims to Ban EVs from Evacuating State Amid Hurricanes

Written by Steven Loveday, InsideEVs
Published March 8, 2023

Republican Florida State Sen. Jonathon Martin believes the state should not allow electric cars to evacuate during a hurricane. His reasoning is based in part on misinformation already debunked when others have made similar suggestions in the past.

According to a recent article published by Electrek, Martin, of Fort Myers, serves on the Florida Senate's Committee on Environment and Natural Resources and the Select Committee on Resiliency. He reportedly asked the state's Department of Transportation to consider banning EV evacuations, since the cars could run out of charge and get stranded, thereby blocking other (gas-powered) traffic from evacuating.

During some recent storms in the Midwest, people posted similar suggestions on social media with claims that a bunch of EVs were expected to end up stranded in the snow while gas car owners made it safely home. However, the opposite proved true in at least some cases.

EV owners made it home and plugged in or sat warm in their cars on the side of the road while gas cars ran out of fuel and some gas stations had long lines, were offline or out of fuel. EVs also aren't impacted by flooding nearly to the level of gas cars, which can be quickly rendered inoperable if they take in water.

The lawmaker's fear here is public EV charging infrastructure is limited, and if the power goes out, electric cars won't be able to charge. However, when the power is out, gas stations are typically closed, and gas car owners don't have gas pumps in their garages at home.

EVs can charge at home or in another area that has power, and can be charged with a gas generator. Since these future powertrains are much more efficient than gas engines, the "full tank" stands to last longer, especially when the vehicle is "idling" in evacuation traffic or sitting on the side of the road "running."

To be clear, EVs don't idle, and they don't really run like a gas car when they're not moving. Instead, they remain quiet and emissions-free while using as little energy as possible to keep the electronics and climate control working. A gas car would need to be running the whole time, cranking out exhaust fumes, and likely using much more gas in the stop-and-go traffic than at speed.

While many EV owners tend to have some range anxiety and pay close attention to things like range, charging time, efficiency, etc., this isn't necessarily true of gas car owners. Since gas stations are plentiful and gas car owners don't tend to have range anxiety, it wouldn't be uncommon for them to set out on the road with a small amount of gas. There's really no immediate need to pull into a gas station and "top up" every day. However, many EV owners wake to a fully charged car every morning.

"With a couple of guys behind you, you can’t get out of the car and push it to the side of the road," Martin said, according to the Tampa Bay Times. "Traffic backs up. And what might look like a two-hour trip might turn into an eight-hour trip once you’re on the road.

"My concern is there’s not an infrastructure currently available in the state of Florida for the amount of EVs that might be used to evacuate, on evacuation routes, during a time of emergency."

Florida Department of Transportation Executive Director of Transportation Technologies Trey Tillander didn't seem to agree with Martin's suggested ban. He noted lawmakers are looking into portable EV chargers. He also said it's the state's responsibility to offer the same level of assistance to electric cars as it does for gas cars.

"So, if an electrical vehicle runs out of charge, there are technologies," Tillander said. "We have our Road Rangers. We have our emergency assistance vehicles that we deploy during a hurricane evacuation that have gas."

To restrict a Florida resident from getting out of harm's way based on the type of car they drive would arguably be outright crazy. Moreover, to help owners of stalled gas cars while leaving EVs behind would be just as insane.

More charging infrastructure is coming via the Biden administration's efforts, as well as progress by many related companies. In the meantime, most EV owners are enjoying charging at home and not having to worry about dealing with gas stations, especially those that may be lined up or out of fuel during an emergency that requires evacuation.

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Ford Announces Major Changes to Improve Profitability, EVs

Written by William Johnson, Teslarati
Published Feb. 15, 2023

Fordon Feb. 15 announced a series of changes and design goals it will be implementing to increase profitability and improve its EV offerings.

Ford’s Q4 earnings report highlighted two major weak points for the company: profitability and quality control. Despite a strong demand for many of its vehicles, particularly its electric offerings, the company saw declines in those two key areas.

To battle these shortcomings, Ford CEO Jim Farley and his team of executives announced a series of changes they hope will revitalize the brand.

According to Reuters, the vast majority of efforts will be aimed at achieving an 8% profit margin on Ford’s next generation of electric vehicles. Compared to rivals, Ford believes it is down by roughly $8 billion in costs, easy to imagine considering the company’s massive $50 billion in planned spending towards electrification.

Planned cost-taming measures include improving the management of production scheduling, which Ford said could reduce expenses by $2.5 billion alone. Further, thanks to the commodities market finally beginning to cool, Ford is poised to see a decrease in vehicle production costs.

More specifically, regarding electric vehicles, Ford aims to produce its new LFP batteries for less than $70 per kWh, a massive leap compared to the NMC batteries Ford currently relies on. The Blue Oval will also be working to reduce battery sizes while maintaining range, thanks to aerodynamics technology it hopes to garner from the company’s new F1 team.

“Why do you think we are doing Formula 1? Because they have the best aero people in the world,” Farley said.

Ford will also be adopting a technology that has aided Teslain its efforts to lower costs: large underbody castings. While the company was not specific regarding which vehicles would be receiving these new castings, they could likely be implemented within the next generation of many of its models, and the upcoming SUVs and trucks that Ford said have finalized designs.

Ford executives maintained changes are still coming to its dealership model. Reduced inventories and an increased reliance on online ordering will cut down on costs, further improving profitability. Ford will also be able to implement more changes to manufacturing, supply chain and distribution operations.

Ford’s plan of slimming down offerings and improving manufacturing sounds similar to Volkswagen’s initial electrification strategy put in place by the now departed Herbert Diess. However, unlike Diess, Farley has the backing of his executives and board members, including Bill Ford, who said Farley’s new plan will be “a full court press,” something he believes the company desperately needs.

Ford is at a pivotal point in its history, but it has proven time and again it can endure and succeed. Hopefully, that will be the case with electrification, and perhaps, it will lead to faster electrification of the industry overall.

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Ford CEO Gives Bold Prediction Regarding EV Price Parity with Gas Cars

Written by Joey Klender, Teslarati
Published June 2, 2023

FordCEO Jim Farley said he does not believe price parity between EVs and gas cars will come until after the end of the decade, which holds potentially harsh consequences for the adoption of sustainable powertrains as automakers aim to lower costs.

Since the beginning of the more widespread production of electric vehicles, many people have said the biggest bottleneck in widespread adoption is the lack of price parity, or price equality, they have with gas cars.

There are still many more affordable options in gas-powered vehicles, but there are also EVs that fall below the average transaction price for a new car, which according to Kelley Blue Book, was $55,089 in April. That’s down $10,096 from a year ago. In the overall market, it was $48,275, and there are plenty of EVs under that price.

However, EVs still need to reach a point where there are numerous options for $15,000, $20,000 and even $25,000 with acceptable range ratings for consumers. Farley believes the date may be well into the future.

At an Investor Conference that Farley spoke at May 30, he said EVs will continue to be more expensive than gas counterparts until second- and third-generation versions go into production after 2025.

However, the real parity won’t occur until between 2030 and 2035, Farley said, because those cost savings will take place due to “dramatically lower labor content,” and the vehicles will be built with less complexity and with fewer parts.

Automakers won’t be the only ones to suffer, either, in Farley’s estimation. While Ford has 600,000 subscribers in its software business, which has grown from 200,000 at the same time last year, true profitability in the EV side of its business will come from direct-to-consumer sales through online platforms and further growth of the software subscriptions.

Companies will also have to work together if sustainability is the ultimate goal. It comes down to more than just a business perspective, and companies have to be willing to set aside competitive advantages to help one another.

“Cooperation is essential,” Farley said. 

Cooperation is just what Ford is doing, as it announced a special partnership with Tesla, which will open its Supercharger Network to the Detroit-based company in an early move that eventually will lead to adopting Tesla's Charging Connector in a few years.

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Ford CEO Predicts ‘Pace of EV Adoption Will Be Slower than Expected’ in Near Term

Written by Maria Merano, Teslarati
Published July 30, 2023

FordCEO Jim Farley predicted electric vehicle adoption will be slower than expected, at least in the near term. Ford recently released its second-quarter results, revealing a substantial loss in its EV division. 

While the veteran automaker reported revenue of $45 billion, which represents a 12% increase year-over-year, Ford also shared it had lost $1.1 billion before interest and taxes on its EV business during the second quarter. The figure is more than double the previous year’s losses.

As noted in a report from the New York Times, Ford is now expecting to lose $4.5 billion before interest and taxes on its EVs this year. Previous forecasts estimated losses to be at around $3 billion. 

Ford CFO John Lawler shared a comment about the trend in a conference call. 

“While the shift to EVs is unquestionably underway, the last few weeks have shown us the adoption by early, majority customers will be a little slower than expected,” Lawler said. He also noted Ford was slowing its rollout of EVs to some degree, with the company now expecting to make 600,000 EVs a year by the end of 2024. Previously, Ford aimed to reach such levels by the end of this year.

Despite the larger losses, Ford’s EV business is still growing. As noted by the company in a press release, revenue from Ford Model e’s first-generation electric cars rose 39% in the second quarter. Farley remained optimistic about the matter. 

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford. EV customers are brand loyal, and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” Farley said. 

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Ford Confirms F-150 Lightning Production Resumes Following Battery Fire

Written by Joey Klender, Teslarati
Published March 14, 2023

Fordconfirmed March 13 that production of the F-150 Lightning all-electric pickup restarted that morning at the Rouge Electric Vehicle Center (REVC) following a shutdown due to a battery fire.

Ford CEO Jim Farley shared images of F-150 Lightning production lines, stating, “This is the engineering standard we aim to deliver consistently.”

In February, Ford shut down production and shipment of the F-150 Lightning after a battery fire occurred in one unit during a quality inspection. Ford said the root cause of the fire was identified soon after.

Ford worked with battery supplier SK On to refine the engineering of battery cells, where the fire’s cause was pinpointed. SK On recommended a series of changes to its battery cells, and Ford agreed, which then allowed the supplier to restart production at its plant in Commerce, GA.

Ford F-150 Lightning units already at dealerships were unaffected and were allowed to be sold to consumers, the company confirmed.

In early March, the company recalled 18 units of the pickup, which stemmed from the battery cell issue. Ford said it recalled the units due to “a battery cell manufacturing defect” that occurred over a four-week period at the end of 2022.

No injuries or accidents occurred that Ford was aware of, and the automaker said it had “a clean stock of battery packs” for the March 13 restart of production.

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Ford Could Cut F-150 Lightning Production Due to Waning Demand

Ford confirmed it is temporarily cutting a shift at the Michigan factory that produces the electric pickup, but said it is due to supply chain disruptions.

Written by Brad Anderson, CarScoops
Published Oct. 17, 2023

Fordmay cut a shift at the factory responsible for building the F-150 Lightning due to an alleged drop in demand for the electric pickup truck.

A letter sent out by the UAWchapter official who represents workers at the Michigan factory claimed the firm will cancel a shift and wants to increase production of its combustion-powered pickups. It has been 18 months since production of the F-150 Lightning commenced and already, sales appear to have dropped significantly.

“It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked,” the official wrote.

The Wall Street Journal spoke with Ford about the letter. The car manufacturer declined to comment on the possibility of dropping a shift on a long-term basis but did say supply-chain disruptions and quality checks mean there will be schedule changes in the short term. The Ford spokeswoman added it is these constraints that have forced it to temporarily cut a shift impacting 700 workers.

Soon after launching the F-150 Lightning, Ford increased its production plans twice with the intention of building 150,000 examples annually. However, the carmaker reported a 45.8% drop in sales of the pickup in the U.S. through the third quarter. This came despite Ford cutting prices of certain F-150 Lightning models by as much as $10,000 in July, reversing price increases it made earlier in the year due to the soaring cost of raw materials.

Ford is aiming to produce 600,000 EVs annually by the end of 2024, about a year after it had initially planned to reach that figure. CEO Jim Farley said this was because the firm expects the “EV market to remain volatile until the winners and losers shake out.”

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Ford Cuts Dealer EV Requirements Again

The voluntary Model e EV Program has been opposed by most state dealer associations since it was unveiled in September 2022.

Written by Dan Mihalascu, InsideEVs
Published Nov. 22, 2023
 
Ford Motor Company has backed down on requirements imposed on its EV dealers and is again making changes to its voluntary EV certification program.

The move comes just as the automaker has lost a legal battle to Ford dealers in Illinois, where the state motor vehicle board ruled the automaker broke the law by requiring its dealers to invest hefty sums if they want to continue selling EVs.

The company said its decision to cut training costs by half and reduce the number of chargers that retailers are required to install at their premises is not related to the Illinois ruling.

"We made changes to the voluntary Model e EV Program as we continue to adapt our overall EV strategy to the market. We also continue to listen to dealer feedback. These changes are not a result of the Illinois outcome," Ford spokesperson Marty Günsberg told InsideEVs, adding Ford made the latest changes to adjust to market demand. 

As part of the new requirements, Ford's upper-tier "Certified Elite" dealers now have to install three Level 2 chargers instead of five, while the lower-tier "Certified" dealers are now required to install two Level 2 chargers instead of five. Furthermore, the additional Level 3 fast-charger for 2026 for Certified Elite dealers has been removed altogether.

For both tiers, Ford also pushed back the deadline to have the chargers in place by six months to June 30, 2024, because of charger supply chain and infrastructure delays. In addition, Ford said it is cutting the cost of dealer training by up to $20,000---about half---for the 2024 calendar year.

Charging requirements was a key point of contention in the Illinois case. Twenty-six dealers argued Ford's program violated state franchise laws, adding the more expensive Level 3 chargers were unnecessary.

Ford said it would appeal the decision. "Ford stands by its voluntary Model e EV program," the company said in a statement. "It is designed to make sure that Ford and its dealers provide Illinois Ford EV customers with a segment-leading experience throughout their purchase, service and ownership journey.”

The Illinois dispute is just one of several battles Ford is carrying out nationwide over its EV program. The program has been opposed by most state dealer associations since it was unveiled in September 2022. Initially, about 60% of Ford and Lincolndealers opted in---approximately 1,920 of the company's nearly 3,000 U.S. dealers.

In January, Ford made some concessions to dealers, including scaling back the amount of charging a dealer would be required to offer public charging every day and removing a cap that limited lower-tier dealers to selling a maximum of 25 EVs per year.

After the changes, Ford gave dealers the option to drop out of the program or change tiers. The automaker's total enrollment fell 1.5% to 1,891 of its dealers.

Since then, EV enrollment has fallen to approximately 1,550 dealers, or about 53% of the total network, Ford said Nov. 20, according to Automotive News. Still, due to the size of Ford's network, the company claims 86% of the population lives within 20 miles of a Ford dealership capable of selling and servicing a Ford EV.

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Ford Dealers Now Have Until Dec. 2 to Decide If They’ll Invest Up to $1.2 M on EVs

By Stephen Rivers, CarScoops
Published Oct. 31, 2022

In September, it was reported Ford planned to have dealers sign up to sell electric vehicles by Oct. 31. Evidently, numerous dealers reached out and asked for more time to make their choice.

Now, Ford is obliging and providing another month for dealers to make a decision about their future plans, pushing back the deadline to Dec. 2.

“We value our relationship with our dealers and have decided to provide additional time for our dealers who have not decided or asked for more time,” said company spokesperson Marty Gunsberg in a statement to Automotive News.

Ford wants to ensure dealers who do sell their EVs are well-educated and equipped to do so. To that end, it’s offering two different levels of EV buy-in that dealers can choose from. Neither option will be inexpensive for the dealers in question.

The first level is Model e Certified, and Ford estimates dealers who select it will need to spend up to $500,000. That money will go towards EV infrastructure at the dealership itself. Dealers who go this route will have access to order EVs for customers, but they won’t be provided with EV inventory or demo units.

Those who go for the second tier, Model e Elite, will have access to EV inventory, demo units and a guaranteed allotment each year. They’ll need to spend up to $1.2 million for the privilege. That includes ensuring the dealership has at least two DC fast chargers, one specifically for customers.

Moving the deadline back provides more time, especially for dealers torn by this decision. It also more closely aligns with the Dec. 15 deadline set for Lincolndealers. It’s noteworthy that dealerships that offer both Ford and Lincoln products will be required to invest in both programs, as opposed to one or the other.

Ford has made it clear in the past it won’t force any dealership to make the change or buy into the program. The exclusive benefits for dealers who opt in begin Jan. 1, 2024.

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Construction continues at Ford's new EV complex in Tennessee, an addition to its Ohio assembly plant, and a battery plant in Michigan.

Ford Expects $3B Loss on Tax-Subsidized EV Venture in 2023

Written by Scott McClallen, The Center Square
Published March 28, 2023

Michigan taxpayers bet $1.6 billion in subsidies on Ford Motor Company's new BlueOval electric vehicle battery plant in Marshall, but Ford expects to lose $3 billion on its EVs this year, it recently told investors.

John Mozena, president of the Center for Economic Accountability, a nonprofit organization for transparent economic development policy, told The Center Square in an email the major financial loss “[H]ighlights the dangers of turning taxpayers into speculative investors through so-called ‘economic development’ programs.”

“If automakers’ losses are being driven by federal policy that’s promoting a particular green technology, what happens to Michigan taxpayers’ investments in those battery plants if the policy changes or the technology is replaced by something better or more profitable?” Mozena said.

The auto giant faces an uphill battle to convince Michiganders that EVs are better than vehicles with internal combustion engines. Less than 30,000 EVs are registered in Michigan compared to 6.5 million ICE vehicles. Moreso, the average EV cost is roughly $65,291, according to Kelley Blue Book.

Meanwhile, the average price for a gas-powered vehicle was $48,100. Moreover, many used gas-powered cars cost between $5,000 and $15,000.

Ford claims the BlueOval factory will be key to dropping the cost of EVs via lithium iron phosphate batteries and pump out 2 million vehicles globally by 2026.

After its restructure, Ford will report results by three separate businesses: Ford Blue, iconic gas, hybrid vehicles; Ford Model e, breakthrough EVs; and Ford Pro, commercial products and services. It previously reported results by region.

“We’ve essentially ‘refounded’ Ford, with business segments that provide new degrees of strategic clarity, insight and accountability to the Ford+ plan for growth and value,” CFO John Lawler said said in a statement. “It’s not only about changing how we report financial results; we’re transforming how we think, make decisions and run the company, and allocate capital for highest returns.”

Ford Controller Cathy O’Callaghan said three principles guided the new segmentation: fairly representing the business models of each segment, giving the Ford Blue, Ford Model e and Ford Pro teams both the latitude and accountability for their success, and being easy to understand and simple to execute.

“This wasn’t a simple proforma spreadsheet exercise,” O’Callaghan said in a statement. “It represents nearly a year of disciplined work by hundreds of Ford people to help us capture the huge strategic opportunity of Ford+ and provide unique transparency into our business.”

Ford said it’s aiming for a 10% margin target for company earnings before interest and taxes by the end of 2026.

For 2023, Ford said it expects to earn about the following before interest and taxes: about $7 billion for Ford Blue; a full-year loss of about $3 billion for Ford Model e; and approaching $6 billion for Ford Pro, nearly twice its 2022 earnings.

Ford plans to announce first-quarter results May 2.

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Ford F-150 Lightning Lot Fire Leads to Recall of 18 Trucks

Written by Stephen Rivers, CarScoops
Published March 21, 2023

Fordis recalling 18 units of its F-150 Lightning truck over fears they might spontaneously catch on fire. The danger is directly related to one truck that unexpectedly went down in a blaze on a Ford holding lot in February. The Blue Oval has since said it’s fixed the potential problem.

On Feb. 14, it was reported Ford shut down production and deliveries of the F-150 Lightning over battery concerns. What wasn't initially known was that Ford found the issue because one of the trucks burnt to the ground. By Feb. 19, Ford spokesperson Emma Bergg clarified Lightning customers didn’t need to worry.

“I can confirm one vehicle fire. Let me reiterate, we have no reason to believe F-150 Lightnings already in customer hands are affected by this issue,” she said.

On March 21, it was reported that on March 2, Ford determined 18 completed Lightning trucks are out there with suspect battery cells. The automaker didn't say whether or not any have made it into customers' hands but did confirm dealers will replace the high-voltage battery pack at no cost to the customer.

At the heart of the issue are cathode aluminum tabs in the battery pack that can improperly contact anode electrode material. Should that occur while the battery is at a high level of charge, it can create a short circuit and ultimately lead to a fire.

According to its review, the flawed battery packs were only built by the supplier from Dec. 14 through Jan. 17, and only the 18 included in the recall made it into the wild. Ford even included the 18 VINs in the recall as part of the filing so those concerned they may have an affected vehicle can find out immediately.

Owners can also call their local dealership or the NHTSA directly. Ford isn’t aware of any injuries or accidents related to this recall.

Affected VIN List:

• 1FTVW1EL0PWG09271
• 1FTVW1EL5PWG11047
• 1FTVW1EL0PWG10095
• 1FTVW1EL6PWG09338
• 1FTVW1EL0PWG11005
• 1FTVW1EL7PWG08599
• 1FTVW1EL1PWG08985
• 1FTVW1EL7PWG09266
• 1FTVW1EL2PWG09451
• 1FTVW1EL8PWG08143
• 1FTVW1EL2PWG11054
• 1FTVW1EL8PWG08904
• 1FTVW1EL3PWG09569
• 1FTVW1EL8PWG09244
• 1FTVW1EL3PWG09605
• 1FTVW1ELXPWG07639
• 1FTVW1EL5PWG09167
• 1FTVW1ELXPWG09925

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Ford F-150 Lightning Prices Increase After Production Restart

Written by Joey Klender, Teslarati
Published March 30, 2023

FordF-150 Lightning prices are increasing once again after the automaker restarted production of the all-electric pickup.

Ford is hiking the F-150 Lightning Pro trim level to $59,974, up $4,000. The Lariat Standard Range F-150 Lightning will go up $1,500, from $74,474 to $75,974. The Platinum trim level is going up to $98,074 from $96,874.

The price changes were first reported by Automotive News.

A Ford spokesperson told Teslarati the price increases are in response to current material costs, market factors and supply chain constraints.

The increases mark a substantial hike in F-150 Lightning prices since the truck was first offered. In January 2022, Ford announced that the Pro trim would start at $39,974, the Lariat at $67,474, and the Platinum at $90,874.

The once-affordable Pro trim of the F-150 Lightning has gone up considerably and is now a full $20,000 more than it was when it was first announced, nearly a 50% increase in price since then.

Ford reopened order banks for the F-150 Lightning on March 30 for prospective owners who already had reservations to buy the pickup. Ford has ramped production to three shifts a the Rouge Electric Vehicle Center in Dearborn, MI.

The REVC is returning to full production as well, and trucks will begin shipping to customers.

The automaker shut down production in February for more than a month as a fire caused by an electrical short-circuit in the battery pack in the REVC. Ford issued a recall of 18 units that may have contained the potential defect.

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Ford F-150 Lightning Production Halt Continues, Battery Issue Identified

Written by Joey Klender, Teslarati
Published Feb. 24, 2023

Ford said Feb. 24 it will suspend F-150 Lightning production for another week after identifying issues with battery cells provided by supplier SK.

Ford halted production of the F-150 Lightning on Feb. 14 after a vehicle displayed “a potential battery issue,” which the company said was identified during pre-delivery quality inspections. “We are holding vehicles while we investigate,” Ford said at the time.

Ford then extended the stoppage through Feb. 24, stating the week before it had identified the issue and expected to conclude its investigation.

However, Ford will continue the halt in production “through the end of next week,” it told Teslaratiin a statement. This means the halt will persist through March 3.

“The teams worked quickly to identify the root cause of the issue,” Ford said in a statement. “We agree with SK’s recommended changes in their equipment and processes for SK’s cell production lines. SK has started building battery cells again in Commerce, GA.”

Ford said it would take time for SK to ensure it is once again building high-quality cells for the F-150 Lightning.

Ford did not issue a stop sale of F-150 Lightning units that had already arrived at dealer lots when the issue was spotted. However, the automaker did issue a temporary halt on production and a stop-shipment of units until it could confirm its vehicles were unaffected by the cell issue.

We thank Teslarati for reprint permission.

Ford F-150 Lightning Production Resumes

Written by Dan Mihalascu, InsideEVs
Published Aug. 1, 2023

Fordhas resumed F-150 Lightning production at its Rouge Electric Vehicle Center (REVC) in Dearborn, MI, after a six-week shutdown.

The plant was temporarily offline as Ford worked to expand and retool the facility in order to triple its manufacturing capacity. By this fall, the automaker will have the ability to produce the F-150 Lightning at an annualized rate of 150,000 units.

While the temporary shutdown of the Rouge EV Center limited customer deliveries this summer, Ford said the facility is now ready to accelerate the ramp-up process to unlock supply and help meet demand for its electric truck.

The facility is on track to build more than 70,000 F-150 Lightning trucks in calendar year 2023 with production for U.S. customers expected to ramp in the fall.

"We are all looking forward to getting these F-150 Lightning trucks into the hands of our customers---from the U.S. to Norway. This milestone is the result of a lot of hard work and collaboration," said Debbie Manzano, director of manufacturing for Ford.

Besides increasing production capacity, the new tooling is also said to support Ford's drive for high quality. That's because the Rouge Electric Vehicle Center now uses equipment to automatically measure and validate exterior body fit for margin and flushness precision. It's the first time a Ford North American plant has used such tools.

In addition, a third station was added to validate wheel alignment and headlamp aim for driver assist technology. Ford said training for 1,200 additional manufacturing employees will continue for three weeks, with incoming operators shadowing experienced employees in a buddy system for rapid onboarding.

To match the scale of F-150 Lightning assembly at the main plant, Ford is also ramping up production of battery packs at the Rawsonville Components Plant and EV power units at the Van Dyke Electric Powertrain Center in Michigan.

The production capacity increase at REVC leads to shorter order-to-delivery times for customers. Ford is focusing on building high-demand trim levels like XLT, which makes up more than 50% of new orders.

Furthermore, the F-150 Lightning Pro is now available again for retail customers in limited quantities, with the units allocated for loyal reservation holders who have been waiting to order since launch.

Finally, Ford said the increased production capacity also opens up the opportunity to broaden the number of trim levels offered across the lineup, something customers have been asking for since the reveal.

"We have learned a lot from our first-ever EV truck customers, including a preference for technology and visual differentiation. We continue to refine the F-150 Lightning lineup to make the jump to an EV truck an easy choice for customers," said Marin Gjaja, chief customer officer, Ford Model e.

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Ford Gets $9.2B Federal Loan to Build 3 EV Battery Factories

Written by Iulian Dnistran, InsideEVs
Published June 23, 2023

Fordreceived a huge $9.2 billion loan from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) for the construction of three manufacturing plants that will produce batteries for EVs built under the Ford and Lincoln brands.

The loan is the biggest the U.S. government has awarded to a carmaker since the 2009 bailouts, according to Bloomberg---more than triple the $2.5 billion loan received by General Motors last year.

Ford will use the money to build the so-called BlueOval City project in collaboration with cell maker SK Innovation, spawning two battery-producing facilities in Central Kentucky and a third in West Tennessee.

All three sites are expected to go online in 2025, with a combined capacity of 129 gigawatt-hours annually, contributing to Ford’s plan to assemble around 2 million EVs per year by 2026---a massive ramp-up compared to the roughly 132,000 units it made last year.

The end goal of this undertaking is to build a reliable domestic supply chain while reducing America’s reliance on China when it comes to building EVs, while also leading to more Americans gaining access to the government’s $7,500 tax credit for U.S.-built EVs.

As of today, the Ford F-150 Lightning pickup is the only vehicle in the Blue Oval's lineup that qualifies for the full tax credit, while the Mustang Mach-E and E-Transit are only eligible for a $3,750 credit.

Of course, the government’s plan to ramp up EV adoption in the U.S. by offering huge low-interest loans to automakers and tax credits to buyers of American-made EVs is supported by taxpayers' money.

When the three facilities become operational in 2025, they’ll create roughly 11,000 new jobs for Americans, with 6,000 positions expected to become available in Stanton, TN, and another 5,000 in Glendale, KY.

Ford’s six-square-mile manufacturing complex in Tennessee will also be home to an EV plant that will churn out 500,000 vehicles per year, including the company’s next-generation pickup truck, codenamed T3.

Combined, the three battery-making sites and the EV manufacturing facility will have an estimated price tag of $11.4 billion.

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