Ford Has 1 Major Problem That Will Make Tesla and GM Jealous
Just about every automaker in the world will enter the electric vehicle market within the next year or more. Some of the most popular automakers, like Ford and GM, have a tough act to follow. Tesla is dominant in the EV game and has been for quite some time. That’s why it’s considered a colossal rival for just about every new electric model. However, as Ford enters the EV world, one major problem will make Tesla and GM jealous.
Ford has one major problem, but it’s a great one to have
The favorite in the electric vehicle market and the champion for some time now is Tesla. However, according to TheStreet, Ford’s CEO Jim Farley intends to dethrone the current EV leader. Firstly, Ford divided itself into two separate divisions, with one entirely focused on EVs. The Ford Model E division is in charge of beating Tesla in the electric vehicle market. In contrast, the Blue division will continue Ford’s original mission of being dominant with internal combustion engine cars.
From the start, Ford’s electric models have one major problem that gives them an advantage over other automakers. So much so that even the likes of industry titans such as Tesla and GM are jealous. That problem is the very high demand for Ford products. Especially over the past few years, immense demand has been tough to deal with for all automakers. Production is down, and demand is way, way up. However, it’s the best problem a company could have, regardless of production struggles.
Strong demand is Ford’s biggest problem, but it wouldn’t have it any other way
A spokesperson from Ford told TheStreet that Ford is no longer taking orders for either version of the Mustang Mach-E. That decision had to be made because of the strong demand surrounding the vehicle. Unfortunately, Ford cannot meet the current demand for the Mach-E presently. The American automaker is wholly overwhelmed by the new electric crossover’s immense demand.
“We have seen unprecedented demand, and are focused on building existing customer orders for Premium and California Route 1 Mustang Mach-E models.”Ford spokesperson via TheStreet
However, Ford mentioned that customers could work with dealers to buy a Mach-E from stock. Additionally, ordering for Mach-E GT, GT Performance Edition, and Select remain open, so customers can still order one. The automaker also told TheStreet that it would communicate ordering details for the 2023 model year “as soon as they become available.”
Tesla and GM will be jealous
Currently, the biggest competition for the Ford Mustang Mach-E electric crossover is the Tesla Model Y. In the future, the Cadillac Lyriq from GM will be next on the list. While Tesla’s crossover did sell more units than Ford’s in 2021, the Mach-E saw an uptick in demand toward the end of the year. That demand has carried over into 2022 and continues to this day. Alternatively, GM’s offering isn’t in the same ballpark as the other two rivals.
To keep up with demand, Ford hopes to increase production at its Cuautitlán, Mexico plant to 200,000 units by 2023. Initially, the plant was intended for two other models, the Ford Explorer and Lincoln Aviator EVs. However, those two could require a new location if Ford needs to ramp up Mach-E production even more. When TheStreet asked if these models were relevant to the demand for the Mustang Mach-E, Ford’s spokesperson said the company does not comment on future plans. This type of demand for Ford EV models is exactly what will make Tesla and GM jealous.
Ford has one major problem that will affect other models
The American automaker plans to produce 2 million electric vehicles per year, beginning in 2026. Coming soon, 600,000 units by 2024 is the goal of one of the biggest automakers in the world. These numbers are based on the Mach-E, F-150 Lightning, and electric Transit. We already know the Lightning has received massive demand, so these problems could repeat themselves twice over.
In conclusion, Ford has one major problem, but it’s the best one any business could have. Demand is so strong for Ford electric models it’s currently impossible to produce enough units to fill every order. Competitors like Tesla and GM dream of having this demand for their EVs. Unfortunately, it’s come during the chip shortage, which plays a significant role in Ford’s inability to produce.