As the auto industry transitions to all-electric vehicles, with billions of dollars invested in new production facilities and technology development, there are still lingering questions over long-term costs. That includes the production side, but also the consumer side, as despite lower running costs, EVs typically have a higher price tag than equivalent internal-combustion models. Now, the CEO of GM’s crosstown rival, Ford Motor Company, has indicated that EV cost parity likely won’t happen before the 2030 calendar year.
Ford Motor Company CEO Jim Farley speaks at an event earlier this year
According to a recent report from Reuters, Ford CEO Jim Farley addressed the issue of EV cost parity during a recent investor conference, during which he predicted that EVs would continue to be more expensive than equivalent ICE vehicles until the second- and third-generation vehicles began rolling off the line after 2025. Around the 2030 to 2035 calendar years, Farley predicts that EV cost savings would be realized by “dramatically lower labor content,” as well as lower parts requirements, smaller batteries, and lower materials costs.
Farley added that further savings could be realized via lower distribution costs as EV sales move increasingly online. What’s more, new software-driven digital services could open up the potential for higher revenue streams, as could new insurance products using data harvested from both vehicles and drivers. Farley stated that offering insurance could be “a natural for Ford.”
Late last year, a report from Bloomberg indicated that the average cost for EV batteries increased 7 percent in 2022, as compared to costs in 2021. The increase followed a steady price decline recorded over the previous decade, dropping from $1,000 per kWh in 2010 to $141 per kWh in 2021. The increase in 2022 was attributed to higher materials costs and greater demand, plus delays in new supply.
At the recent investor conference, Farley also addressed industry-wide consolidation efforts, predicting that cooperation would be “essential” in the years to come. Ford recently struck a deal that allows Ford customers access to the Tesla supercharger network.
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Comments
Wow, another 10 years before the cost of an EV breaks even with ICE, per the Ford CEO. I guess he confirmed what most of us already knew, there’s no real savings with an EV.
Carl that’s looking at things the wrong way….
The maintenance and expected trouble with EVs is far less – if purchased from a reputable manufacturer such as GM. Actually there are few other manufacturers of EVs that I would trust, and that includes Ford and Tesla..
Even some GM vehicles have troubles. The Cadillac Society article about the new Chinese CT6 sedan brought up comments about buying a used CT6 with a V-6 but commenters said there are all kinds of problems with these engines…
I didn’t purchase a CT6-Plug-In Hybrid with a seemingly reliable 4 cylinder since I thought UNCHARACTERISTICALLY, GM had a Rube Goldberg overly complicated implementation of the drive train, and the thing test drove like a boat – just the same as other ICE Cadillacs of late. The often criticized ELR was fantastic in this regard…. Car and Driver said that this was the best performing/handling HYBRID (plugin or not!!!) they had ever tested (in 2014). The raw numbers seemed to indicate the car was sluggish but C & D said the car SEEMS much faster, and the extra money spent on the high-cost passive suspension and expensive Bridgestone tires made it a clear winner…
I drove that 2014 ELR about 95,000 miles and still recovered $15,000 when trading it in afterwards, on a $50,000 purchase price.. I was obviously MORE THAN SATISFIED…I got free oil changes for 5 years, and I actually did only two oil changes myself (the oil lasts 24,000 miles and 2 years in intermittent engine service), and I did have one transaxle half shaft replaced by a shade tree mechanic for a few hundred dollars, and had to buy one set of replacement tires, but traded the car in with just those things replaced…
A full EV would have even less things replaced per 95,000 miles. I consider that – plus lack of unexpected surprises to be very much worth a slightly higher first cost. Plus, in most areas of the country, the refueling cost is 1/3 of what it would normally be with gasoline in at least 2 seasons (spring and fall).
Of my 3 plug-ins, only 2 are full electrics.. I like the ‘intrinsic backup’ of the 2019 VOLT, and expect to keep it for quite a while.
EVs are OBVIOUSLY not a good match for you or other people who might have problems with them…
Nor should people be forced or even overly encouraged to get rid of their ICE vehicles with any kind of coercion. ICE vehicles do a VERY fine job at what they do, and have a very light weight, compact fuel source – there’s a lot of energy in just a few pounds of gasoline, and they are relatively clean – at least compared to the cars from many decades earlier…
The maintenance, while more than required of EVs, at least does not require new plugs and points every 10,000 miles anymore. So – with most ICE vehicles the maintenance requirements are deemed by their owners to be very tolerable. That should be a fine situation with everyone.
What I do NOT like – is I have been hit by “ROLLING COAL” pickup trucks twice in the past few weeks of driving my just washed and waxed new LYRIQ.
Why are those ICE drivers so Mean? I have done nothing to them…
While two of my comments to you have somehow been lost I’ll try some different wording.
You’re confusing being mean with someone who is just a douche bag.
Exsanguinate:
Noted; I stand corrected.
“The maintenance and expected trouble with EVs is far less – if purchased from a reputable manufacturer such as GM…”
How can you possibly know this?
Morrisangelo:
How could I possibly know about GM and Tesla evs? Here’s my purchase list:
1). Tesla Roadster 2011
2). Chevy VOLT 2011
3). CADILLAC ELR 2014
4). CHEVY VOLT 2012 (USED) – currently still driven by my tenant past 130,000 miles.
5). CHEVY BOLT 2017
6). CHEVY VOLT 2019
7). CHEVY BOLT EUV 2021 (A 2022 MODEL).
8). CADILLAC LYRIQ 2023
I most likely have greater experience with various evs than you do.
Way too soon to determine repair/recall/fault/failure trends.
Are you going to next tell me that each and every one of your cars listed has been flawless during the EV infancy?
Morrisangelo:
No… My Tesla roadster was the most unreliable car I ever owned, but later cars like the early S and 3 were even worse.
The first generation Volt and the quite similar ELR were both almost flawless. With this exception:
The hot water heater in the ELR had to have a $600 small Chinese pump replaced under warranty.
Toyota just forced you to run the engine if you want heat, at least in early models. I don’t know what they Toyota are doing lately, but the volts heating system are a bit too woke for reliability. They end up using more gasoline running the electric heater than would happen if they just used jacket heat like any other ice car. And of course the CUE screen which caused trouble in all Caddy’s had to be replaced under warranty.
But the basic car worked which was the whole point of my comment.
I appreciate your honesty, Bill.
EVs may function just fine, and I suspect they’re probably reasonable for the first 3 years or so.
For me, it’s the unknown longer-term reliability, some range anxiety, and future terrible trade-in values along the lines of typical hybrids on the market today.
“Terrible trade in values along the lines of typical hybrids on the market today?”
I sold my 2019 Ford Fusion Hybrid for $5200 more than I paid for it. The dealer only wanted to give me $4500 on a trade. Hybrids are commanding higher prices than non hybrids.
Sorry Danno, despite this upside-down, over-inflated market and your pot luck, few want a used hybrid over 5 years old or nearing 100k miles.
Nonsense, check cars.com and see for yourself.
Bill,
Please tell us honestly about your Chevy Bolt experiences. Here is what I have seen in the media:
Don’t park them in the garage possibility of fires
Don’t charge them more than 70% capacity, possibility of fires.
All 149,000 built recalled due to battery issues.
A software fix to allow 100% charge, but still only outside.
Recall ended with only around 60% of owners actually getting new battery packs.
Thanks for any light you can shed on this topic.
HI Geo:
Sure – reasonable questions..
At first GM was overly, unbelievably generous with bolt battery replacements – and warranty resets back to 100,000 miles when battery was finally replaced. 8% bigger battery free of charge.
NOW, with the later bolts, while initially they promised to reset warranties and change batteries, they now have decided NO DICE. They will run a program that will supposedly check battery pouch condition and will, after 6 months, again allow 100% capacity..
For 6 months you have to live with 80% capacity. I am a high – mileage driver and I CANNOT get along with only 80% capacity…
Of course, the software is from a company (GM) that cannot keep ICE trucks’ radios from getting amnesia (forgets stations, reverts to full volume on startup) due to ANOTHER GM problem , that of making truck battery 12 volt systems go dead all the time.
Obviously the reason the radios fail is that they have been designed for PERFECT 12 volt battery voltage, rather than having memories ‘ride through’ any marginal starting batteries. With my LYRIQ (an all electric cadillac, but specifically just another GM model among many that have a 12 volt battery problem), people drive 30 miles out of town, and even though the big propulsion battery is relatively full, has the 12 volt battery go dead as a doornail, and the car fails – since even the contactors do not have enough juice to close as they run on the 12 volt system.
I noticed an ADDITIONAL 12 volt problem with my Caddy Lyriq – when camping, even though the car is ‘on’, the battery discharges when using a large inverter off the official battery power take off points. I am *NOT* notifying GM since I found a completely curative workaround which GM i have CONFIDENCE would totally mess up. I have had no troubles with my LYRIQ since I do ABSOLUTELY NO software upgrades, which seem to trigger the dead batteries.
More specifically on the BOLT EV and BOLT EUV – any purchase of them will be a fine high value decision especially if you can utilize the tax credits…
GM reneging on the battery changeout granted is dirty pool. I charge to 100% and take my chances.. Of course if the house burns down, GM will say I should have done the recall. NHTSB obviously was briefed by GM’s legal department and will take NO customer complaints on this issue…
The car itself is pretty good. A minor nitpick is the am radio will obviously pick up the noisy inverter hash from the LG Korean designed electronics when listening to very weak stations… Moderate or strong stations are no problem however.
The 12 volt battery for my ELR lasted for 8 years until i traded it in.. My 2012 volt ended up being sold to my tenant until he was t-boned last month.. The 12 volt battery lasted about 12 years (manufactured in 2011) until the collision, where the insurance company totaled the vehicle. Both cars had moderate reduction in range after 100,000 miles but being a plug-in hybrid, it was non-eventful. My Bolts seem to have lost essentially nothing, since the bolt will have to accumulate about 400,000 miles to get the same wear and tear that 100,000 miles on the volts and elr accrued. Bigger batteries last LONGER for that reason.
GM propulsion batteries are far more reliable than other cars, and, are designed for longevity. – not just 2 years where compactness and light weight are bigger priorities. as in a cell phone.
Any other details that you want please ask a follow up question. Yes, low mileage drivers can just recharge the thing by plugging it into a ‘110’ receptacle, with or without an extension cord…. You need a minimum of a 16/3 extension cord with a good ground if you decide to charge at the faster of the two ‘110’ rates. An ancient grounded 18/3 extension cord (no longer made in the states) is adequate if you only charge at the slower rate. – so what I’m saying is the car has very minimal charging requirements… If you don’t want to spend any money, you don’t have to.
It’s a shame that Chevy canceled the Bolt. It’s a great car at an even better price. It has saved me a ton of money on gas already and it’s never been back to the dealer for anything. Once EV’s become commonplace you won’t find dealers in every town, regional only because of lack of any maintenance. China is going to fill the gap if American companies don’t produce economical EV’s.
You can order one today if you want. It will be canceled later this year, but you can still order them.
EVs save money and time in the long term. No gasoline, no oil and filter changes, no engine maintenance, and all its fluids last over ten years. Most EV owners will chargr for free at their homes while they sleep The only maintenance will be washer fluid replacements then tires. But Michelin has a tire system named UPTIS that will reduce tire cost for EVs to one tenth since only the thread is replaced. It is being tested with Chevy Bolts.
The electric companies are generous your area…
Since when is electricity free? I want to move there…
“…charge for free…”. Ugh.
And when a battery pack or motor fails in an EV, you’re talking tens if thousands of dollars to replace.
Tigger:
If we are talking about the BOLT EV or BOLT EUV these cars have a reasonable 200 hp motor…. The amazing thing here is that the 2 stage reduction helical gearing (as an old school 1/4″ drill motor) is BEEFY..
In fact, it is more gargantuan than what appeared in the $100,000 – 400 hp TESLA model S. Of course, the teslas had murmuring gear boxes, and model 3 ‘s and model Y’s have OIL FILTERS (!!!!!) on them to no doubt pick up metal shavings from the failing gear teeth. IN other words, MY VOLT , which has a small oil filter for the very reliable old school 4 cyl engine, has HALF the oil filters of AWD 3 and Y teslas (one filter for each axle) .
I have sometimes accidentally run my bolts flat out (87 mph) and even when ‘flooring it’ the gearbox is imperceptible- that gear box will outlive me. One of the rare GM products that is BETTER than it has to be.
If it will take Legacy Auto that long they ALL need to replace their Leadership.
What will the excuse be lets say in 2026 when Tesla is easily selling Five Million vehicles.
Kill me now if you’re telling me there will be 5 million Model Y, 3, and Cybertrucks. Model S and X sales don’t add much. There will be a lot of people unable to find their car in the parking lot.