Ford EV Sales Rose 38% In 2016 Led By Fusion Energi

Ford EV sales rose 38% in 2016, helping Ford claim 18% of the US market for electrified cars. Sales growth was led by the Fusion Energi plug-in hybrid, which recorded a 63% increase in sales compared to 2015. The growth in Ford EV performance comes even though all of the company’s EV offerings are sedans, a segment of the market that is shrinking in this era of low gas prices and surging demand for crossovers, SUVs, and light trucks.

Ford has big plans to expand the number of EV models it offers its customers over the course of the next several years. It says it will bring an all electric SUV with at least 300 miles of range in the near future. It’s current lineup includes the Fusion Hybrid, C-MAX Hybrid, C-MAX Energi, Focus Electric, and Fusion Energi. Ford sold a total of 23,895 EVs last year.

Compared to its total sales for the year, the number of EVs in the mix may look small, but the uptick in sales belies CEO Mark Fields’ assertions that nobody wants to buy electrified cars. Fields is on record as saying high fuel economy standards will rob America of 1,000,000 manufacturing jobs, a rather odd statement for the head of one of the world’s largest car companies to make. No wonder many people think the biggest obstacle to an electric car future is the negative attitudes of car company executives.

On a percentage basis, the spurt in sales proves otherwise. Recent studies indicate that Americans really are interested in more efficient vehicles that pollute less and use precious resources more wisely. The Consumer Federation of America finds strong support for such cars despite historically low prices at the pump.

Yesterday, a group of senior Republican leaders proposed a carbon tax that would do away with all such burdensome regulations but add 38 cents to the price of a gallon of gas. If that happened, the frenzy for large, thirsty vehicles would likely cool down and demand for EVs increase. Will the proposal get traction with members of Congress? Don’t bet on it. Americans are perfectly willing to see the EPA gutted and public education turned into a mockery, but pay extra for gas? Them’s fightin’ words, cousin.

Source: TechCrunch

Ford Says No Thank You To 200 Mile Electric Car

The future of the electric car is a matter of much conjecture. Last week at the SAE World Convention in Detroit, Kevin Layden, director of electrification programs and engineering for Ford, told the press his company has no plans to join the electric car range race. Instead, it will introduce a new Focus Electric with 100 miles of range this fall. The Focus Electric currently has 76 miles of range.

“I think right now with the launch of the Focus Electric at 100 miles, it is going to satisfy a big chunk of the population,” said Layden. “It’s going to be really affordable and a step up from where we are now.” Less range means the car can use a battery pack that is smaller, lighter, and less costly.

Last week, a survey by National Renewable Energy Laboratory was released that says most people thinking about the purchase of an electric car consider range and price the two most important factors. Most said they would like a car with 300 miles of range that costs less than $30,000. No such car exists at present, of course. More range costs more money. A lower purchase price means less range. There is no way to reconcile those two competing factors.

This is a remarkable statement coming just a few weeks after the stupendously successful launch of the Tesla Model 3. Tesla now has more than 400,000 reservations for its new car and that number continues to rise. Chevrolet says its Bolt will have “at least” 200 miles of range and will be in showrooms before the end of this year.

During the SAE conference, several speakers said a range of at least 200 miles is needed to alleviate consumers’ range anxiety about battery-powered cars. From a driver’s perspective, maximum possible range is not the issue. What matters is how far they can go and still have a comfortable reserve so they don’t have to worry about being stopped on the side of the road with a depleted battery.

In general, drivers only plan to make use of a about 2/3 of a battery’s maximum capacity, whatever it may be. If a car has 100 miles range, the driver starts worrying about range at about 65 miles or so. If a car has 300 miles if range, anxiety levels rise at around the 200 mile mark. It’s just human nature. There are lots of people driving conventional cars who start thinking about getting gas when the gas gauge gets below half. Very few drive around with less than a quarter of a tank of gas.

Last December, Ford said it would spend $4.5 billion to rejuvenate its electrified vehicle lineup. If its plans for the Focus Electric are an indication of how it looks at the market for electric cars, it will be content to be the bargain basement brand. That may be good for moving a lot of product but not necessarily good for generating a lot of revenue.

Ford, like FiatChrysler, does not seem to be all in on the electric car future the way Tesla Motors is. Which strategy makes the best business case won’t be known for 5 to 10 years. But Ford seems to be positioning itself to get left behind as the market transitions to the electric car era.

Source: Automotive News