Despite plans to scale back in the region, Ford is planning to use the market in China as a “listening post” to help the automaker better understand EV battery tech.
According to CEO Jim Farley, speaking with the Financial Times, Ford will use a concentrated approach in China amid growing competition from domestic EV makers.
Rather than pouring money into the region like Volkswagen, which revealed a €1 billion (around $1.1 billion) investment to establish a new EV development center earlier this year, Ford plans to focus on less risky commercial vehicles like delivery vans.
After seeing domestic automakers in China winning over buyers from foreign brands, Farley said that even if it were to launch new passenger EVs in the region, there’s no promise it would win them back, claiming:
If you just reinvest in a new cycle of EVs in China, there is no guarantee, or no data, that would suggest the western companies win.
Legacy automakers are losing market share to cheaper and, in some instances, more tech-savvy EVs in China. For example, China’s largest EV maker, BYD, surpassed Volkswagen in Q1 to become the top-selling brand.
Ford to study EV battery tech while scaling back in China
After seeing its market share halve since 2016, Ford is redeveloping its strategy in the region.
We have been for the last couple of years, really looking carefully at our China business. And now we have made up our mind where our strategy is going to be, and it will be a much lower investment, more focused investment.
Although local reports claimed Ford was preparing to cut 1,300 jobs this week, Farley declined to comment.
Farley said rather than pulling out of the region altogether, the automaker will use China as a “listening post” to gain deeper insights into EV and battery tech, claiming:
We don’t want to leave China like others have because the battery technology, the user digital experience . . . is among the best in the world.
This is an idea Farley has reiterated several times now. On the company’s Q1 earnings call, Farley said his visit to China was a “real epiphany,” claiming:
It’s interesting to see how customers are no longer just attracted to traditional luxury brands with EVs or even hardware design anymore.
Instead, he says, “The best new brands are offering integrated digital, retail, lifestyle and experience that are software defined.”
Electrek’s Take
Ford is likely taking the smart route here by doubling down on what it knows in commercial vehicles and scaling back on where it is losing. Rather than fighting the trend, Ford plans to sit back and study the game from the inside to see how EV makers in China are doing it.
EVs made in China are already beginning to take over key import markets. For example, in the first three months of the year, 28.2% of electric cars imported into Germany were from China, more than tripling from only 7.8% last year.
Ford is playing the long game by studying what tactics work best with plans to implement them in its home market, where it has the advantage.
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Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.
GM has deployed three of its HYDROTEC hydrogen gensets to the Los Angeles area as a way to help generate power for EV drivers and emergency vehicles recovering from the devastating effects of the recent wildfires.
“GM is extending targeted local support to our customers and employees who have been impacted by the California wildfires,” said Duncan Aldred, vice president global commercial growth strategies and operations. “We’re finding ways to help get people back on the road and using our resources to make a difference in the recovery in the weeks and months to come.”
The mobile charging station rollout is part of a broader response to the fires from GM that includes “planned” philanthropic contributions to nonprofits serving affected communities, employee giving campaigns to benefit the American Red Cross Los Angeles region and the California Fire Foundation, and a complimentary subscription to Crisis Assist Services, which enables customers with OnStar-equipped vehicles to get information about the fires, receive routing guidance, and access immediate emergency assistance from an OnStar advisor.
GM also says it’s providing customers with damaged or destroyed GM vehicles assistance toward the purchase or lease of a new GM vehicle, subject to certain terms and conditions, which may include certain qualifications and restrictions. The company will also help cover collision repair deductible costs for damage to GM vehicles incurred from the wildfires – again, subject to certain qualifications and restrictions.
Electrek’s Take
While it’s certainly commendable for GM to take steps in an effort to support wildfire victims, it feels like a company that made more than $19 billion in gross profits in 2023 (and over $20 billion in 2022; 2024 numbers aren’t out yet – but the company did well enough to spend more than $6 billion buying back its own stock) could have done better than announcing “planned” donations and asking its employees to pony up. By my math, GM shareholders could have given each of the 163,000 global employees the company had in 2023 a $36,000 one-time bonus in lieu of those stock buybacks.
That said, how many companies are doing nothing at all? Good on GM for trying, then – here’s hoping others step up, too.