Sina Science and Technology News On the morning of February 24, Beijing time, it was reported that on Wednesday local time, Ford CEO Jim Farley said at the live webcast Wolff Research Conference that there was no plan to split the business of electric vehicles or gasoline vehicles.
He added: "We know Wei Lai and Tesla Our competitors, we must defeat them, not just compete with them. And we must also defeat our competitors in the internal combustion engine field. "
Some investors have pushed Ford and its competitor GM to split their respective electric vehicle businesses in order to better tap the full value of these businesses. At present, Tesla is not only a leader in the field of electric vehicles, but also the world's most valuable automobile manufacturer.
Ford has previously denied reports that it is considering splitting its electric vehicle or internal combustion engine vehicle business. The US carmaker said last month that it would have an annual production capacity of 600000 electric vehicles worldwide within 24 months.
Farley said that the company's management team believed that their electric vehicle and internal combustion engine vehicle businesses were underperforming in terms of profitability. He also said that Ford believed that the operating costs of the traditional internal combustion engine vehicle business could be greatly reduced by better quality, lower structural costs and reducing vehicle complexity.
Turning to the internal combustion engine business, he said: "We have too many people, too much investment, too much complexity, and no expertise in transforming assets. In short, this is a waste. To obtain the profit margin of electric vehicles, as we have seen in companies like Tesla, we need real experts to promote this scale." He added:, Ford needs to hire more professionals in the areas of electrical components, advanced electrical architecture and digital customer experience.
In the electric vehicle business, Farley said that Ford is working hard with suppliers to ensure the supply of key raw materials for batteries, such as lithium, nickel, rare earth and copper, so as to minimize the risk.
In terms of vehicle distribution, he said that Ford needed to eliminate "expensive inventory" in its sales system, and make it easier for consumers to book and track the assembly process of vehicles before delivery.
