Ford: Gasoline vehicles are a growth business

CNN business
—

When Ford CEO Jim Farley split the company’s passenger car business into two, one for electric vehicles and one for gasoline vehicles, Farley took charge of the electric vehicle business, called the Model e. Among many industry observers, it was said that those who run the gas-powered car business were there to nurse the last years of dying technology.

Kumar Galhotra, president of Ford Blue, Ford’s internal combustion engine division, said: On the contrary, he said, it’s booming.

“For those who may be nursing, I spend a lot of time and investment in scaling up. [production] It’s the capacity of all Ford Blue cars,” he told CNN Business. “So for me, the Ford Blue is a coming-of-age story.”

Basically, by stepping firmly into the world of the internal combustion engine, Ford is losing access to other automakers’ gasoline vehicles, even as Ford itself rolls out new EV models. is profiting from

]Ford has unveiled a new Mustang Coupe that is neither electric nor hybrid. The new two-door Ford Mustang Ford management says the company is meeting its emissions targets with the help of electric vehicles such as the Mustang Mach E SUV and plug-in hybrids such as the Ford Escape PHEV. (Hybrids are also included in Galhotra’s Ford Blue division.)

But the market for internal combustion engine performance remains, and Ford has decided to serve customers who want it, Galhotra said. Meanwhile, Stellantis has announced that it will cease production of the closely related Dodge Challenger Coupe in 2023.

“There’s a lot of speculation in this particular segment, the Mustang, that the segment may shrink, but competitors may leave this segment,” he said. We can grow even when the world is shrinking.”

Unlike GM, which has publicly stated plans to sell only zero-emission vehicles by 2035, Ford has not set an end date for making and selling gasoline vehicles. Although it has had some success with electric vehicles such as, it sells alongside petrol vehicles in the same market segment. Ford also sells hybrids and plug-in his hybrid models, while GM says it will go straight into his EVs.

Ford is concentrating its gas-based vehicles in three broad areas that cover all the models Ford sells, Galhotra said. These are enthusiast vehicles like the Mustang and Bronco off-road SUVs, general-purpose SUVs like the Ford He-Escape and Explorer, and, of course, trucks like the F-Series and Maverick. Within these areas, Ford is still finding new niches to explore, such as the Bronco and the Maverick, a light truck with similar engineering to cars. It is a recently introduced model in the segment and is doing well.

“We can’t make enough Mavericks,” says Galhotra. “Sold out.”

Most customers of both the Bronco and the smaller Bronco Sport are new to Ford, he said. About 60% of Ford Bronco buyers don’t own a Ford these days. This is close to the so-called “conquest rate” of Ford’s electric vehicles like his Mustang Mach E and Ford F-150 Lightning electric trucks. However, Ford sold over 75,000 Broncos and over 71,000 Bronco Sport in the first eight months of 2022, compared to around 26,000 Mustang Mach-Es. Similarly, Ford has sold about 50,000 Mavericks, and most of its light-duty truck buyers are also first-timers for Ford.

Galhotra said Ford could continue to expand and expand its various model lines to keep sales growing. The Bronco is a family of models that includes the full-size Bronco SUV and the smaller Bronco Sport. Each is also available in various special editions, such as the Heritage model. Ford successfully used a similar strategy with his Mustang, spawning seemingly endless variations, from his $27,000 four-cylinder Ecoboost Mustang to his $80,000 760-horsepower Shelby GT 500.

“I think it’s possible that one day Mavericks will become a family,” he said.

Clearly, at some point, gasoline cars will be phased out, Galhotra admitted. With a shift towards providing, Ford has a chance to win back sales from its drivers. Galhotra said he’s not ready to switch.At the same time, of course, Ford also offers electric car option for them Who is ready, he said.