Ford is Throwing $11 Billion at Its Electric Car Problem (theverge.com)

Ford said on Monday it will boost its investment in electric vehicles to $11 billion in the next five years, more than doubling a previous commitment. Company's chairman Bill Ford said the car maker would have 40 hybrid and fully electric vehicles in its range by the same period. It comes as countries around the world put more pressure on car makers to rein in carbon emissions. From a report: It was a dramatic escalation in Ford's crosstown rivalry with General Motors, which has seen its stock prices rise thanks to its commitments to both electrification and autonomy. GM has said it plans to roll out at least 20 new electric cars by 2023, a goal that puts it in a position to bring battery-powered driving to the mainstream. Last week, it unveiled a concept autonomous car without steering wheel or pedals. Meanwhile, the Blue Oval has had a challenging 2017. It remains strongly profitable, but its sale are stagnant, its costs have increased faster than expected, and its margins have failed to meet targets.

Comments

It will be money down the drain.

[140Mandak262Jamuna]

It will be money flushed down the toilet, not because electric cars are inferior, but because the sales infrastructure of the automakers is fundamentally flawed.

Ford has very strong binding contracts with dealers. The dealer franchise agreements were set in the era before the consolidation in the auto makers. It is very heavily in favor of the dealers. The traditional car makers have much lower bargaining power against the dealers.

The dealers who sell both IC engines and Electric motor cars, have vested interest in killing the electric cars. We know theoretically electric cars have lower maintenance. But they know actual data, brandwise and model wise, which cars and features produce repair shop revenue and which dont.

Unless Ford forms a distinct subsidiary, unencumbered by the dealership agreements, a separate division like Saturn or something and embrace the direct sales model like Tesla they are doomed.

It is high time all the car makers form distinct divisions without any agreements with NADA. As long as they sell cars through NADA members, the short term short sighted actions by the dealers will doom the car makers.

EVs won't sell in the inner city

[swell]

My city has an urban population of about 3 million. The vast majority of us live in apartments and condominiums. The remaining single family homes are converted to higher density housing when the owners die off. These condos and apts are traditionally required to provide one or 1.5 parking spaces per unit; in most cases that's almost entirely outdoor offstreet uncovered parking. Residents with more than one car must park in the street (if they can find a space).

Urban planners say that density must increase to preserve open space elsewhere. Bicycle paths are taking the place of parking spaces and mass transit is encouraged. Fewer parking spaces are required for new buildings under construction.

So the question is: where will these 3 million people charge their EVs?

In fact an electric car is not an option in urban areas. Even if your property manager could provide a charging unit, how would it be metered and billed to you? Who would maintain it in a mostly public space where vandals and theft could be a problem?

Many urbanites will choose Uber or Lyft, but Ford's electric auto sales will not reach the inner city. Privately owned EVs are only practical in suburban & rural single-family home areas.