Ford CEO sees electric vehicle price war as EV costs decline

DETROIT (AP) — Ford’s chief executive says the global auto industry is headed for a huge price war in the coming years as electric vehicle costs drop and companies sell EVs priced around $25,000. CEO Jim Farley told the Bernstein Strategic Decisions Conference on Wednesday (June 1, 2022) that the $25,000 electric vehicle will democratize EVs. Currently it costs way more to build an EV than one with a gas engine. But Farley said big cost reductions are coming with new battery chemistries that use fewer precious metals such as nickel and cobalt. Plus, he said EVs will take less time and labor to build, saving more money. Ford also plans to cut distribution and advertising costs.