Ford CEO Jim Farley told the Wolfe Research virtual global auto technology conference Wednesday that the company could hit Tesla-like profit margins by using common electric motors, electronic components and other parts across all sizes of vehicles.
But “I can't turn to the ICE organization and say, ‘Go be Tesla,’” Farley said. “They may do it on the body. They may do it in plant operations, but that's not good enough,” he said, without giving specifics of what changes are coming. Ford's distribution costs are $3,000 to $4,000 higher than Tesla's, Farley said, and is seeking to close that gap by attracting new talent with those skills.
The company also can differentiate itself by doing online software updates so that customers understand how their vehicle is changing, and it needs to keep service customers so if they have a fender bender or a problem develops in four or five years, they can stay within a simple Ford system, Farley said.
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