Gasoline cars are a growing business – News
CNN Business –
When Ford CEO Jim Farley split the company’s passenger vehicle business into two divisions – one for electric cars, the other for gas-powered vehicles – Farley took charge of the job. electric car business, a division called Model E. There was speculation among many industry watchers that the man who ran the gas-powered vehicle business was then there to take care of this dying technology in his later years.
It doesn’t die, said Kumar Galhotra, president of Ford Blue, Ford’s internal combustion vehicle division. On the contrary, he says, it is thriving.
“Anyone who could be a nurse, I spend a lot of time and invest more [production] All of our Ford Blue vehicles are capable of this,” CNN Business said. “So for me, Ford Blue is a story of growth.”
Basically, by gaining a firm foothold in the internal combustion world, Ford is taking advantage of customers who are losing access to gasoline-powered vehicles from other automakers, even as Ford itself rolls out new electric vehicle models.
]Ford just unveiled a new Mustang coupe that, remarkably, isn’t electric or even hybrid. Ford executives say the new two-door Ford Mustang can stay entirely gas-powered as the company hits emissions targets with electric vehicles, such as the Mustang Mach-E SUV, and plug-in hybrids. Ford Escape PHEV. (Hybrids are also included in Galhotra’s Ford Blue category.)
But there’s still a market for internal combustion performance, and Ford has decided to serve customers who still want it, Galhotra said. Meanwhile, Stellantis has announced that it will end production of the Dodge Challenger Coupe and the closely related Dodge Charger in 2023.
“In this particular segment, in the Mustang, even though the segment may shrink, there’s a lot of speculation that our competitors may exit the segment,” he said. “So even if the industry’s share goes down, we can grow.”
Unlike GM, which has publicly stated that it plans to sell only zero-emission vehicles by 2035, Ford has not set an end date for manufacturing and selling gas-powered vehicles. Ford has had some success with electric vehicles like the Mustang Mach-E and F-150 Lightning, which sell alongside gas-powered models in the same market segment. And Ford also sells hybrid and plug-in hybrid models, while GM says it will go straight to electric vehicles.
Galhotra said Ford focuses its gasoline vehicles in three broad areas that encompass all models sold by Ford. These are Mustang and Bronco off-road SUVs, general-purpose SUVs like the Ford Escape and Explorer, and of course, enthusiast vehicles like the F-Series and Maverick. Among those areas, he said, Ford is always finding new niches to explore, like the Bronco and the Maverick, a small truck with car-like engineering. Both have recently launched models in segments that Ford hasn’t previously entered and are doing well.
“We can’t produce enough Mavericks,” Galhotra said. “We are completely exhausted.”
Most customers of the Bronco and the smaller Bronco Sport are new to Ford, he said. About 60% of Ford Bronco buyers have not recently owned a Ford. That’s close to the so-called “win rate” of Ford’s electric vehicles like the Mustang Mach-E and the Ford F-150 Lightning electric truck. But Ford has sold 75,000 Broncos and 71,000 Bronco Sports in the first eight months of 2022, compared to about 26,000 Mustang Mach-Es. Similarly, Ford has sold about 50,000 Mavericks, and most of those small-truck buyers are new to Ford.
To maintain sales growth, Galhotra said Ford could spend and expand its various model lines. The Bronco is already a family of models, including the full-size Bronco SUV and the smaller Bronco Sport. Each has a variety of special editions like the Heritage model. Ford successfully employed a similar strategy with the Mustang, churning out seemingly endless variants, from the $27,000 4-cylinder Mustang Ecoboost to the $80,000 760-hp Shelby GT 500.
“I see the potential for Maverick to one day become a family,” she said.
Apparently at some point petrol vehicles will be phased out with Galhotra being allowed. But it’s unclear when that will happen, and with other automakers moving towards offering electric-only vehicles, Ford has the opportunity to boost sales for drivers who aren’t ready to make the switch. , said Galhotra. At the same time, of course, Ford will also offer electric car options for those who are ready, he said.
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