Ford’s move into electrification is part of a broader push by major corporations to rebrand themselves and shake off the clichéd image that has been associated with them for decades.
So Ford is now throwing its weight around. The new SUV is a departure from the crossovers and SUVs that have dominated the market in recent years. As part of a push to differentiate itself from Tesla, Ford aims to position Lightning as both a luxury and practical vehicle. It will hold a majority of the market for at least a decade as buyers continue to shift more toward vehicles that offer change and luxury when necessary rather than utility or simplicity. That means we should see a major shift in pricing as well, as Bloomberg expects the base model to start at $37,500 before any incentives.
Ford’s shift to electrification is part of a broader effort to transform the automotive industry, one that includes powertrain tweaks, lighten the weight, and digital services. But electrification is also about perception. It’s about what consumers perceive as possible, and how that impacts their shopping decisions on a day-by-day basis. So while the company may tout its efforts to offer more affordable fuel options, consumers may ultimately decide that the added range is worth paying a premium for — even if that means paying less in fuel costs each month.
Forbes published today: ” This is why, at least initially, Ford may not be targeting its traditional truck-buying consumer. Instead, it has its eye on corporate customers — including oil companies — looking to replace fleet vehicles. Transitioning fleet vehicles away from fossil fuels is an easy way for companies to show they are serious about cutting carbon. EVs have lower maintenance costs, battery range is less of an issue and Ford’s sub-$40,000 sticker price for the Lightning all could make it an affordable option.
“The market will absolutely be there for a competent, not overly expensive, electric truck—on the commercial side,” Ramsey said. “With consumers, whatever they get from them will be gravy.”
Oil companies, of course, are facing their own pressures to reduce carbon output. Public sentiment and policy have shifted away from the oil business because of climate change concerns. Last month, the International Energy Agency said that producers must stop all oil and gas exploration this year to meet the zero-emission guidelines required under the Paris Climate Accord.”
The bottom line: I am confused about which story to believe. We are told EVs are great, and the oil companies can take advantage of the ESG value of using electric trucks or an electric frac fleet. But in California and Texas this week we are being told that there may not be enough power to recharge your electric cars.
The idea of having an electric car or truck is great. However, the United States is not ready for the switch to EVs or even total renewable energy. We saw that in Texas this year and we are being reminded this month as the warnings roll out that charging your electric car might not be available. The United States needs to spend money on building the infrastructure to support all types of energy, and not leave out the disproportionately impacted communities. It seems that all politicians, and policymakers, don’t think about how energy policies will impact the less fortunate until the rules are put into place. The solution: Let’s hear all sides of the discussions and make a unified decision for the best of all Americans.
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Stu Turley, President, Sandstone Group
