Ford Motor Co needs to overhaul its century-old business model – from slashing advertising spending to reworking its dealer network – if it is to earn enough profit on electric vehicles to compete with Tesla and others, the automaker’s chief executive said on Wednesday.
The shift from internal combustion vehicles to EVs is “the most exciting land grab in our industry since the Model T” introduced by Henry Ford in 1908, CEO Jim Farley said at an Alliance Bernstein conference.
As the competition shifts from established players like Ford to newcomers from China and Silicon Valley, “the industry is heading to a huge price war,” Farley said.
